What can Gervase Consulting do for my Company and my Business?
At Gervase Consulting we understand owning business can be an exciting and rewarding. We also know that running a business can be challenging. There can be many factors that may affect your business and it can be unclear when to seek help from a Regulated Insolvency Professional.
Gervase Consulting is there for you to discuss:
Cash Flow Fluctuations / No Cash Flow
Assist in identifying factors contributing to ups and downs in revenue come fluctuations in your personal financial picture:
A weakening cash position can be stressful, let us review your position and provide the help you need
Bad Debts and Slow Collections
We can assist in providing advice and structure
We can assist in helping you formulate a plan of when to spend money for expansion or equipment
Difficulty Obtaining Finance
Let's explore the reasons for requiring additional finance, look at alternatives and look at the long term outcomes and objectives.
Declining Sales or Difficulty Selling Stock
There can be a number of reasons for declining sales and slow moving stock. Let us utilise our own business running experience and expert contacts help formulate a plan.
Changes in Market Conditions, Regulations
When the market changes your business can sometimes be caught out, managing existing customers, suppliers and financial commitments can be tricky. Let us work with you to formulate a strategy that works for you as well as your creditors.
Unpaid GST/ PAYG/ Superannuation Liabilities
You can be held personally liable for some unpaid taxation debts. it is important that you are aware of this and take all necessary steps to rectify unpaid tax.
Demands for Payments
Whether it is a letter or statutory demand for payment, it is paramount that you take actions to rectify, as failure to so can result in a determination that the company is insolvent. We can review the demands and assist in providing details to the creditor and managing the payment of the creditor with a view to avoid unnecessary costs.
We can help take the stress out of your situation - Let's get to a solution!
Our Approach to your solution?
1. Contact our office to arrange an obligation free assessment of your position
We need a little information so we can understand what you need. We may request some details on what you owe, what you own and what is the immediate problem or concern.
2. Agree together on the proposed next steps
We will then provide you with a proposal with the necessary documentation to proceed with the agreed actions and set time-frames for key dates.
3. Action the solution
We will guide you through the process for as long as it takes and help you achieve completion of the chosen actions in a timely and professional manner.
At Gervase Consulting we don't use a 'one size fits all' approach as we understand every situation is unique.
That's why we work with you to find the best outcome, which will satisfy all stakeholders.
If your financial problems are mounting, don't waste time. Talk to us today and get your financial situation back under control.
We specialise in dealing identifying business viability, implementing profit making strategies and work with you to achieve your business goals.
We are your independent expert to work through the challenges that arise in business from time to time regardless of industry or size.
Changes to business practices at the right time can sometimes avoid a Formal Insolvency Appointment
Seeking the right advice can be everything
Case Study Example - why timing matters.
Gervase Consulting were approached by the Director at the advice of their accountant to seek insolvency risk advice from a Regulated Insolvency Professional.
The Director held off for almost 6 months before contacting our office for advice, at time the company's debt had increased, there were demands for payments and cash flow was at a stand still despite current work in progress.
A formal appointment by way of Voluntary Administration was commenced as at the time of our meeting the company was cash flow insolvent and the Director was at risk of Insolvent Trading if they continued to trade. We as Administrators assessed the current work in progress and the viability of business to continue to trade and made the decision to continue to trade with a view to trade out via a Deed of Company of Arrangement or sell the business as a going concern keeping all staff employed during the process.
Early in the appointment it became apparent that the business had a strong customer base and contracts to sustain the business longer term. However, on closer examination of job costing procedures including quoting it was clear that the job estimates and budgets were not taking into account all fixed costs of running the business, which were ultimately taking any profits made form a job. Changes were made during the Administration period to job costings that had a positive affect on trading profits and we received significant interest to purchase the business as a going concern.
Ultimately, the business was unable to be sold as a going concern due to additional finance securities that were secured against vital assets to continue to trade during the period that the Director tried to fix their ailing business. There was not other option but for the company to enter liquidation and for the business to close. A last resort for all stakeholders involved.
If we had had the opportunity to review the company's business practices including job estimates earlier, we could have avoided the need to further finance.
- With small changes to quoting practices, the business would have been able choose accurately when not to take on a job, especially when the job will run a loss.
- We believe that we could avoided the formal insolvency appointment of this client if we had seen them 3-6 months earlier than we did or an insolvency appointment would have certainly resulted in a sale of business.
- The Director put themselves in significant personal finance difficulty, as they had provided Personal Guarantees for some creditors and was personally liable for unpaid taxation. The Director was so focused on seeking additional finance for the business that they did not fully consider the long term affects on their personal finances. In addition, the company traded for a period insolvency, which the Director became personally liable for any further debts incurred in that 6 month period.