With the recent rise in the number of insolvencies across industries in Australia, it has become important to be aware of the Voluntary Administration process and why should a company use a Voluntary Administrator.
Voluntary Administration is a process where a financial creditor is appointed by a subject company facing financial crisis. Once allotted, the Voluntary administrator investigates the reasons for insolvency of the company, and assesses the best possible solutions to curb overhead costs for a business to continue its operations.
While it is common for any business to run at loss, at any point in time. Once a Voluntary administrator is appointed to the indebted organization, they become responsible for conducting an analysis of the business’ trading capabilities and takes necessary steps to increase the revenue.
If your business is trying to set its base in Australia and is struggling hard to make a positive cash flow to sustain in the trade market.
Below are a few reasons why you should consider using a Voluntary Administrator:
Voluntary Administrators are credible resources who can steer your business clear of any loss.
They help you get a secured investment and positive cash flow creditors.
Administrator do their in-depth research and decide if a business is viable or if it needs liquidation.
They help you buy out time from creditors in order to cut down on debts, shrink costs and staff until you re-establish sales and profit margins.