• I have company debts

I Have Company Debts

Supporting You and Your Business

You may have made the error of getting into debt you thought you could pay through sales in your business, only for sales to have fallen through.

Alternatively, the debtor you were banking on hasn’t paid on time – or, in an absolute worst-case scenario, it has gone into liquidation or bankruptcy (meaning you won’t reclaim that money or time again).

Don’t despair, though, as LemonAide can help solve this issue!

With our expertise in navigating company debts, we can guide you through potential ways to support your business – just as we have helped previous clients in similar situations.

A Significant Debt Position Doesn’t Always Mean Closing the Business

Has someone – such as an accountant, bookkeeper, business coach, or another ‘trusted advisor’ – told you to close your business because it has too many debts?

It’s important to find out what your business looks like without the significant debt, especially the ones that aren’t directly linked to your business. Of course, some debts are necessary to run your business, such as finance around motor vehicles if you’re a tradesperson.

But what if we threw the other debt in the bin… would your business be viable? If so, it might still have the potential to thrive!

  • Company Debts 2

Case Study: Graham’s Café

One of our clients, Graham, was (and still is) a café owner in Melbourne. As a result of COVID-19, he couldn’t keep paying the lease on his property.

Graham’s accountant advised him to close the business, but then he met a business coach – one who saw the potential in his business and directed him our way.

The landlord gave Graham’s business a dispensation on the rent, alongside offering other building tenants vouchers to spend at the café post-COVID.

While this helped improve the situation, Graham was still worried about the debt he owed the Australian Taxation Office (ATO). This debt had built up over many years, emerging that Graham also owed suppliers and family members.

Key Takeaways:

  • LemonAide reviewed Graham’s business without all the debts and found that it could be extremely profitable.
  • We helped restructure his business, legally and ethically, without any personal consequence to him.
  • The business retained only the debts needed to operate, with the remaining debts dealt with by liquidating the old company.
Schedule a free consultation to discuss your company’s finances

Why a Liquidator Should Never Be Your First Stop

Liquidators have a fiduciary responsibility to and represent company creditors, not the director(s) of the company itself. It means they can’t offer any specific advice about how a liquidation might affect you as a director, alongside how it may impact your personal asset position.

Case Study Cafe

Case Study Liquidation 2

Case Study: George’s Motor Vehicles

Take George, a past client, who decided to put his company into liquidation before obtaining any advice.

When George called us in a panic, he explained that he would be sleeping on the couch for the foreseeable future.

The liquidator had demanded the company cars be auctioned off, one of which George’s wife drove.

How LemonAide Helped:

We called the liquidator to advise that George was being assisted with his company’s liquidation. We requested a calculation of the motor vehicles’ equity and 21 days to review the calculation before making any decisions.

We noted that one of the cars did not possess any equity and obtained a disclaimer letter to protect George’s wife’s car.

For George’s car, we calculated the equity and made a deal with the liquidator for George to purchase the equity in his motor vehicle.

All the above issues could have been avoided if George had approached LemonAide before appointing a liquidator. The equity of his motor vehicles would have been completed in advance, and any funds would have been received into the company’s bank account.

Get started with a free consultation now.

Get Started With a Free Consultation Now

Frequently Asked Questions

LemonAide provides expert guidance to navigate company debts, offering strategies to manage and potentially reduce debt while exploring options to keep your business operational.

Consult LemonAide to explore options such as debt restructuring, negotiating payment plans, or legal action to recover owed funds.

No, LemonAide can help assess your business without its significant debts to determine if it can still be viable and potentially thrive.

LemonAide specializes in managing and reducing company debts, providing tailored solutions to keep your business afloat, unlike general advisors who might recommend closure.

Solutions may include debt restructuring, negotiating with creditors, consolidating debts, or exploring alternative financing options.

Yes, LemonAide can provide guidance on managing remaining assets, dealing with creditors, and exploring options to start fresh.

Contact LemonAide for a consultation to assess your financial situation and develop a customized plan to address your debts.

Yes, LemonAide can help negotiate with creditors to secure more manageable repayment terms and potentially reduce the overall debt amount.

LemonAide can help distinguish between necessary operational debts and those that can be restructured or eliminated to improve your business’s financial health.

Customer Feedback

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“Nathan was excellent in helping me to negotiate with my creditors. His strategic advice has saved me from personal bankruptcy and even saved my car. I can now move on in my financial life, financially free. Thanks Nathan.”

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“The strategies and advice Nathan gave me was nothing short of amazing. He explained things in simple terms for me to understand. I knew straight away he had my interest at heart first and foremost. It was so refreshing to deal with someone that was helpful and willing to go the extra mile for me.”