Many business owners who get behind with their Australian Taxation Office (ATO) tax obligations and can’t keep up with the demands of other creditors end up staring in the face of crippling debt. Things can get rather sticky if the ATO decides to take debt action, and unless you assess all money owing to your business and money owed to your creditors, all your hard work will be for nothing. You need a business debt management plan in place. At Wisdom Business Consultants, that’s one of our specialties, so call us before it’s too late.
Take Control With Business Debt Action
At Wisdom, we help countless small businesses, sole traders, company directors and individuals with tax debt management Australia-wide. We help them devise a business debt management plan or a business debt action plan to help lower their business’s ATO tax debt and keep the debt collection agency from knocking on their doors demanding money for an outstanding debt.
Debt Management Strategy For Business
We have helped thousands of clients with money management solutions and business debt action plans. These are custom plans tailored for your unique business operation to give you breathing space. We can assist with the following:
- Control your business’s financial future.
- Devise a business debt action plan.
- Strengthen your business success.
- Reach your financial goals with a business debt management plan.
- Get trusted help to manage your money.
Debt Management Plan vs Debt Consolidation
Our Experts at Wisdom can help with a debt management plan or debt consolidation, payment plans and so on. So, if you’re at a loss about what to do about your tax debt and other financial obligations, it’s time to take debt action before the ATO does it for you. However, you need to know which is better for your situation, a debt management plan or debt consolidation.
Consolidating Your Business Debts
Many small business owners and others in a dire financial situation try to shuffle their debts by taking from one to pay another. But comes the day when it all falls unless timely business debt action is taken. If this is you, you may think it makes sense to consolidate all your debts into one easy-to-manage monthly repayment. This type of business money management means the interest rate on the consolidated debt loan can reduce the overall interest, your bookkeeping is simplified, and your financial hardship can be resolved quicker.
But hang on, before you jump onto that solution. There can be a downside to debt consolidation -in Australia, your credit rating may suffer by consolidating your debts, but there are ways to circumvent this outcome.
There are four major avenues to consolidate your business debts, all with pros and cons.
Debt Management Plan:
So that you can make manageable monthly repayments on each debt, this debt management for business strategy requires a financial counsellor to negotiate with your creditors on your behalf. This will mean your credit account is frozen for a time, so you cannot buy anything new for your business or open new accounts.
Debt Settlement:
It’s not a matter of a debt management plan vs debt settlement because to settle your debts, you need the cash to pay off all business loans, other loan repayments and personal debts through a negotiator. Whereas you will no doubt need business loans to consolidate. So, with debt settlement, you consolidate your repayments into one amount paid to a debt settlement company that delivers the money to creditors.
Debt Consolidation Loan:
To consolidate all your debts into one for more manageable repayments, you need a bank or lender willing to approve a loan to pay all your debts in full. You end up with just one significant debt but only one repayment to make each month. Your credit rating will show the debts as “Paid in Full” with a zero balance.
Balance Transfer Cards:
Balance transfer cards consolidate your interest rates to zero for a short period, allowing you to pay off your debts without high finance charges.
To spread it over a longer term, your lender may be agreeable to negotiating on your consolidation loan to reduce the interest and monthly repayment amounts. However, your lender may also expect you to pay a higher rate since your loan may be at an increased risk of default. Still, this option may provide breathing space and keep the wolves from the door.
Business Debt Action
If you’re looking for a financial advisory firm expert with excellent credentials in a tax debt management strategy to cover your outstanding debts, get in touch with us at Wisdom today. We have more than 50 years of collective ATO tax industry experience assisting small businesses, sole traders, company directors and individuals in Australia.
We offer trusted, professional and up-to-date business debt management plans and taxation advice through our direct services and Business Consulting Packages. Contact us today so we can carry the business debt burden for you.
