Small business restructuring
Practical considerations before entering Small Business Restructuring (SBR)

Are you planning to enter the SBR (Small Business Restructuring) process? Well, before you take the plunge, there are a few crucial things that you should discuss with your restructuring practitioner. These discussions can help you gain valuable insights and make informed decisions that can impact your business's future. So, don't hesitate to talk to your practitioner and get all your doubts cleared! Subscribe to stay up-to-date on the latest insolvency, bankruptcy and finance information from Worrells.


There are a couple of pitfalls to be aware of before you enter into the small business restructuring process, and the things that you should be talking with your potential restructuring practitioner about before you commence the process. 

One of the key things is you need to look at how you're going to trade through the process, and in particular, what credit you need access to through that process because there are a number of suppliers, especially in the construction industry, who will restrict credit accounts while you're going through the process.

So, you need to be able to continue to trade through the process, and so you'll need to make plans that either have cash aside to do cash on delivery or look at alternative accounts who aren't going to cut you off through that period. Also, some credit cards, in particular American Express, will close your account if you're entering into small business restructuring, and that can be a problem for businesses. 

There's also the publicity aspect. Everyone knows it's publicly published on the ASIC register, and that can have issues for contracts for certain businesses. So, these are just considerations that you need to look at and make sure that you've thought about, you've discussed with your restructuring practitioner, and you've got a plan to deal with before you start the process.

Business can be tough

Our team is focused and ready to help

Get in touch

Subscribe for all the latest help and news