Financial Stress Advice

Financial stress can affect us all, from individuals to the directors of large companies. In all circumstances, it is crucial to seek professional advice early on when dealing with unmanageable debt. A professional team like SV Partners can assist with managing your debts, alleviating pressures from creditors and preventing the situation from becoming worse, all while working towards a beneficial resolution for all parties involved.

Financial stress relating to companies

If you suspect your company is in financial distress or may become insolvent at some stage in the future, it is important to seek professional advice immediately.

Seeking professional advice early on greatly improves the probability of the business overcoming its issues and continuing to trade. More importantly, if you are aware that your company is insolvent and you continue to operate while incurring further debt, you may face serious civil and criminal penalties. Directors involved in insolvent trading can be personally subject to civil penalties up to $200,000, and ASIC may initiate compensation proceedings against directors personally.

What are the warning signs of insolvency for businesses?

It can sometimes be difficult to take an objective view of your business and determine that it is facing financial difficulties or risking becoming insolvent. Some of the common warning signs of insolvency include:

  • Being unable to obtain further finance from existing or alternative lenders
  • Being unable to repay creditors within agreed trading terms
  • Continuing trading losses
  • Overdue taxes
  • Suppliers placing your business on COD, demanding payment before further supply is made or demanding payment plans
  • Cheques being dishonoured by suppliers, creditors and other stakeholders
  • Creditors threatening or commencing legal action for debt recovery
  • Making rounded payments not against specific invoices
  • Being unable to produce timely and accurate accounts
  • The extent to which the debtor is released from their debts

If you are noticing any of these warning signs, it is important to speak to a qualified professional. Contact SV Partners on our confidential assist line by calling 1800 246 801. You can visit our Indicators of Insolvency Checklist for more information.

Financial Stress relating to Individuals

Individuals may also find themselves subject to financial stress if they are no longer able to pay their debts on time. Seeking professional financial advice early on is critical. With assistance, you can rectify the situation to alleviate pressure from creditors and work towards a better resolution for all parties.

What are the warning signs of insolvency for individuals?

Financial stress may not always be easy to spot. If you, or someone you know, is experiencing any of the following signs, seek professional financial advice:

  • Often in denial, refusing to address the situation or believing it will go away
  • Increased tension with your spouse or partner, arguing over money issues
  • Receiving letters of demand, late payment notices, writs and/or bankruptcy notices from creditors, debt collectors or solicitors
  • Being unable to repay creditors (such as banks), credit cards and invoices/bills on time or at all
  • Borrowing money from family and friends, having a lack of savings or spending all your savings
  • Applying for additional finance or credit, or being repeatedly denied further credit

Facing your financial stressors with early professional intervention is the best way to prevent your situation from worsening. The SV Partners team are experienced professionals with years of experience in handling personal and corporate financial distress. We can help you regain control of the situation and work towards a favourable outcome. Contact our confidential assist line on 1800 246 801 to talk to one of our professionals, or speak to us online.

Are you concerned about your financial position? Contact us now for an obligation free consultation.