As a bustling business owner, it’s all too easy to lose track of how much you owe. If you’re struggling to adhere to your payment terms, or are starting to receive calls from the Australian Tax Office or debt collectors, it’s imperative to act promptly to prevent your situation from deteriorating. Debt negotiation is an effective strategy to meet your financial obligations at a manageable pace. Not only does this get your business back on track and keep your creditors happy, but it can also significantly alleviate your stress and worry.
At Wisdom Business Consultants, our combined experience of over 50 years sets us apart in the industry. If you owe money to the ATO, don’t wait until it’s too late. With an unblemished record of service and positive testimonials, we are incredibly proud of our ability to help Australian businesses deal with their debt and make a full financial recovery.
If business debt is keeping you up at night, don’t hesitate to contact our friendly team at Wisdom for assistance here today!
Get Help Negotiating a Reduced Tax Debt
Debt negotiation is the process of contacting creditors to arrange more manageable payment terms and/or amounts. This recovery strategy may be necessary if you’re struggling with cash flow issues, financial hardship, or more personal circumstances, such as experiencing a relationship breakdown, illness or temporary unemployment.
Before negotiations can commence, it’s essential to first determine the repayments you can afford. The most effective way to do this is by analysing your costs (both fixed and variable) against your income and formulating a budget. During this stage, there are a number of free resources and financial counsellors available from the National Debt Helpline, which offers advice on strategies to overcome business debt. By talking to a free financial counsellor, you can obtain help to calculate what you can afford to pay and find methods to increase your income.
To utilise the discreet and professional services of the free National Debt Helpline, visit their website here or phone 1800 007 007.
How to Negotiate Tax and Business Debt
The first step to negotiate debt is to contact the friendly team at Wisdom Business Consultants. Our thorough knowledge of the tax system and persuasive negotiation techniques make our business and tax debt negotiation service industry-leading. We can secure manageable payment plans for our clients, ensuring their debt is paid and they are freed from stressful debt collection calls.
We can negotiate business debts with the ATO, banks and other creditors to secure a positive outcome for everyone. We will work to negotiate a reduction of any fees and interest attached to the debt as well as the debt itself.
We are uniquely equipped to handle the whole process from start to finish and can liaise directly with debt collectors or the tax office on your behalf to make the once-daunting process of resolving debt exceedingly simple.
The Importance of Hiring the Professionals at Wisdom
While simply acknowledging your debt and taking action is the first step to recovery, the second most important step is choosing the right debt-management strategy. While there are a number of effective methods available, they may not all be appropriate for your unique situation. At Wisdom, we can asses your financials to determine the best strategy for you. Other possible solutions include:
Debt Consolidation
Debt consolidation involves reducing multiple debts into a single loan. It can simplify repayments, carry a lower interest rate and reduce fees. Consolidation loans are often a secured debt, meaning that your personal assets may have to be offered as collateral against the loan. For this reason, it’s highly advisable to seek advice from the experts at Wisdom before acquiring a debt consolidation loan.
Business Restructuring
Business restructuring is a process by which a business implements major changes to their operational structure in order to improve processes and adapt to the economy. This process allows companies to retain control of property, assets and operations while developing a plan to settle outstanding debts with its creditors.
Private Lending/Cash Flow Finance
Invoice financing allows businesses to access funds owed to them from unpaid invoices in advance. In this process, invoices are sent to a lending company that releases a portion of the invoice value in advance. The customer then pays within the agreed period and the balance is released to you, less the lending company’s service fee.
Negotiating is often the best solution when your business owes money as it offers the ability to resolve your debt without the risk that comes with obtaining secured loans. If the money you or your business owes to existing creditors is unsecured debt, it’s often best to maintain that agreement.
If you are unsure of which method to choose, it is possible to seek free, initial advice from a financial counsellor. The National Debt Helpline is also an excellent resource for advice on consolidation loans, business restructuring and cash flow finance. To be put in touch with one of their free financial counsellors, call 1800 007 007.
Does Business Debt Negotiation Work?
The ATO is reasonable and receptive to negotiating as they understand periods of financial hardship and extenuating circumstances are common in business and ultimately, they want to ensure they are paid. Maintaining an open line of communication is the best way to secure a plan with payments you can afford.
Debt negotiation is accepted by other credit providers too, including business suppliers, utility providers and lenders, making it an effective strategy for paying debts to both unsecured and secured creditors.
It’s paramount that you commence negotiations at the first sign of severe financial hardship. This helps to prevent legal action from being taken against you in the way of statutory demands, garnishee notices, Director Penalty Notices (DPN) or wind-up notices.
Negotiation is so effective because it gets to the root of financial problems. It requires businesses to carefully analyse their income and determine what they can actually afford to pay. As a result, it enables businesses to pay back their debt at a manageable pace, freeing them from debt collectors and allowing them to grow their savings so their business may make a full recovery.
Fundamentally, if you cannot afford to pay your tax debt, you certainly cannot afford to ignore it, as the ATO will only escalate their recovery techniques. Notices such as statutory demands, Director Penalty notices and garnishee orders can have profound legal implications for you and your business. The Tax Office will likely accept repayment plan requests if you maintain an open and honest line of communication.
Avoid the debt collector altogether and contact our friendly team at Wisdom today! Call 1300 277 148 or email help@wisdombc.com.au.
If You Don’t Pay…
Failing to pay your tax debts can lead to the accumulation of further debt in the way of fees, interest and fines. Left unaddressed, the ATO can take action to negatively affect your credit report, impose personal liability or force business closure. These tactics may include:
Statutory Demand
Statutory Demands are a formal order for payment and the first step the ATO will take to wind-up a company. The only available options to resolve statutory demands include contesting the demand, paying the outstanding debt or appointing an external administrator. Failure to take action will result in the ATO applying to the court to have your business dissolved.
Garnishee Notice
A garnishee notice is a document issued by the Australian Tax Office (ATO) to any third party that is holding money for, or owing money to you when you have an outstanding tax debt. This notice allows the ATO to bypass you, legally ordering the third party to pay the amount related to your tax debt directly to them.
Director Penalty Notice (DPN)
If a company does not meet its pay as you go (PAYG) withholding, goods and services tax (GST) or super guarantee charge (SGC) obligations, it may be issued with a DPN. This notice can hold a director personally liable for the unpaid debt, risking assets such as property, vehicles and cash.
Quality Consulting Services in Australia
With a combined experience of over 50 years, the team at Wisdom are unrivalled in their ability to provide professional assistance and advice to businesses struggling with tax debt. By engaging the services of professional debt negotiators at the first sign of financial hardship, you can avoid the stress of being inundated by payment requests from credit providers and debt collectors. Furthermore, you can prevent more serious action from being taken against you, including legal proceedings, enforcement action or receiving a black mark on your credit report.
Backed by an unblemished record, positive customer reviews and a dedicated team, Wisdom can help you regain control of your debt.
Suffering from Financial Stress? Call Wisdom Today
If your business is experiencing financial difficulty, acting promptly offers the best chance of recovery. Debt negotiation helps customers to reduce costs, improve cash flow, lower interest rates and secure manageable repayment terms. We can help you deal with your overdue debts by negotiating a repayment plan you can afford, reduced interest rates and fees.
We offer a free consultation for initial advice on how to solve your financial challenges. To get started, contact the friendly team at Wisdom today! Phone 1300 277 148 or email help@wisdombc.com.au.
