COVID is over (or at least we’re adapting to it) – but the cash flow challenges of running a SME business AREN’T.
SMEs still in business today are heroes – they’re still in operation AND they’ve kept their people in work AND that’s putting money into the economy.
There’s a whole new set of challenges:
AND even with all this going on, after 2 years of “supporting business” with a relative tax amnesty, the ATO now wants the money it’s owed.
As more companies in recent decades have used “phoenix” tactics to avoid paying their debts, there have been a series of legislative changes made to ensure that the greedy don’t liquidate their way out of their responsibilities.
So – depending on your circumstances – your business tax debt, employee payee tax and other business financial obligations may well become personal debts.
So even if you’re so close to the edge that you were thinking of folding, this may NOT get you out of your business tax debt.
That’s where expert advice from a Working Capital Strategist and a Business Tax Specialist can help you rebuild – and protect your personal future.
Bank finance doesn’t necessarily fix your cash gap
Cash Flow Finance is available from banks, but it has its limitations. While the bank will lend you the money to pay your tax debt (if you meet their finance requirements) it may not be that helpful.
Why? Because they write a check to the Tax Office for the whole amount, EVEN IF your tax debt is officially “under arrangement”!
That might shut the Tax Office up – but it could well do nothing to fix your cash flow and get you out of the Cash Trap. Because if you do get a bank loan to keep you going, it means that $200,000 of a $250,000 bank loan goes straight to the ATO.
More flexible Cash Flow Finance is available
If you have an arrangement with the ATO to pay off your tax debt at $10,000/month, then the same $250,000 loan at a similar interest rate gives you the cash flow you need to do things like:
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How to pay your tax debt and grow your business: