Are you trading insolvent?

If you are trading insolvent, your business is continuing to trade and incur new debts and bills when there are reasonable grounds for suspecting your business is unable to pays its debts and bills when they were due.

For example, you owe supplier A $10,000 and they put you on a trading halt because you can’t pay them, and you then buy from Supplier B, knowing you may struggle to pay them as well.

Currently, there are no penalties for trading insolvent, as long as you are not breaching your other director’s duties.

But in just 37 business days, this changes

If you continue trading insolvent from 1 January 2021 onwards, you as the director may face civil and criminal penalties as well as being personally liable to pay back business debts.

One way to avoid these penalties and avoid being personally liable for the business debts is to make sure you are eligible for the “Safe Harbour” laws that will be in effect from 1 January 2021.

But this takes time.  You can’t turn up on 31 December 2020 and assume you will be eligible.

You need to take action now.

If you want to learn more about the Safe Harbour laws please contact me below for an obligation free discussion.

Contact Wayne Wanders to see if you can access the Safe Harbour Laws

To ensure I help your business specifically, the best approach I have found is to have an obligation free session with you.  In this session we will review your current business in a factual and objective manner, to better understand the challenges that you face.  And this session does not need to be face to face.

At the end of this session, you will have some clarity around whether you can access the Safe Harbour Laws..

Simply fill in the contact form below or email me at wayne@aRealCFO.com.au or call me on 0412 227 052 to organise one of these obligation free sessions.

To get help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times, simply use the contact form on the left to email Wayne or call him on 0412 227 052.

Let Wayne Wanders, a fully qualified and experienced CFO, help you successfully navigate your way through your financial challenges so your business can survive and thrive in these uncertain times.

Wayne Wanders, A Real CFO

wayne@aRealCFO.com.au