From retail to construction and everything in between, My Business Path has helped hundreds of Australian business owners just like you to take control of their debt and get their businesses back on track - some even heading into a stronger and more financially viable future as a result of working with us.
Every member of our team is an expert at helping companies escape crippling debt and get back on their financial feet. We're proud of what we can achieve by working together with small business owners to achieve a favourable outcome for all.
Here are just a few of the businesses we've have helped to get back on track.
SMALL GYPROCKING BUSINESS - SYDNEY
The financial situation:
This small gyprocking business came to My Business Path as it was under pressure from a number of creditors including the ATO (Australian Taxation Office). They owed around $160,000 to creditors overall, $110,000 of which was owed to the ATO. The company's assets included a truck and tools of the trade. If the company were to fold, both the business and the creditors stood to lose money and while the sale of assets would have generated some money for the creditors, they would have received well below true value for them.
The solution which saw creditors paid and the company continue to trade:
My Business Path stepped in to assist the business during a four week period. We had a registered valuer value the business, including all assets and goodwill (which boosted the valuation) for their true market value. We then set the client up with a new ACN and registered the new company for GST. The new ACN purchased the assets and the goodwill of the old company for the true value, as per the registered valuer's valuation. This meant that not only did the creditors recover the true value of the assets, including goodwill, but the client was able to continue trading and thus continue to provide for his family and service his other creditors (including the ATO). We worked closely with the company to help the client put a new business structure in place that would better meet the needs of his business and his creditors and avoid ending up in a similar financial situation again.
CONTRACTOR LABOUR HIRE COMPANY
The financial situation:
This contractor labour hire company working with Queensland, New South Wales and Victoria rail lines came to us with an overall debt of $1.4 million, just under half of which was owed to the ATO. This company had more than 200 staff and $1 million in unencumbered assets. They had just received a winding up application.
The solution which reduced their debt by 84% and retained their 200 staff members:
First and foremost My Business Path arranged an adjournment to push back the client’s hearing date. This gave them eight extra weeks to prepare and gave us enough time to obtain financing through a lease/buy-back arrangement using the assets in the company. The company was then placed into voluntary administration and the DOCA was signed. The funds obtained from the finance arrangement were used to pay out creditors at a dividend of 16c to the dollar, a reduction in debt for the company of 84% - or a much more manageable $224,000.
The terms laid out in the DOCA were successful and the company managed to continue trading, but more importantly, their 200 staff members remained employed. We also implemented a restructure of the company to refocus the business on their core activities and enabled leaner and less complicated operations for smoother and more efficient financial dealings in the future.
But the best part of this story came almost halfway through our six months of working with the company - during the restructure, we discovered that almost 60% of the company's staff were Indigenous Australians, which meant they had the option to obtain government grants totalling almost $600,000 to better train their staff and grow their business. A fabulous story and a truly happy outcome for the company and their staff. It's small details like this that make working with debt experts a worthwhile experience.
LARGE INDEPENDENT SUPERMARKET - RURAL WA
The financial situation:
This business came to us with an average annual turnover of around $10m and two commercial properties. They owed a total of $437,000 to unsecured creditors, including a tax debt of $312,000. They had received a winding up application from the ATO and faced enormous pressure from a major bank to sell not just their two commercial properties, but also the company owner's personal property to pay out their bank loan.
The solution which saved their properties and paid off $1 million total debt:
My Business Path worked with the client for two years until the company was back on its feet. We placed the company into voluntary administration and through this process, we were able to negotiate with creditors to repay the debt over a 12 month period, which reduced the monthly contributions to approximately $20,000. This meant that not only did the company have a viable future with a relatively unaffected cash flow due to a lower repayment amount, it also meant that the creditor (who faced losing the entire loan property amount should the company go under) also made their money back.
This may already sound too good to be true, but it gets even better. During the two years that My Business Path worked with the client, we secured a stable, debt-free and profitable future for the business by also:
- facilitating negotiations with one of the company’s major suppliers who we discovered had been overcharging them for close to 8 years.
- recovering $1.05 million during the administration process through close examination of another of the company’s creditors
- working with the financial ombudsman to keep the major bank away for 12 months, allowing us to assist in the refinancing of the company property - which the client didn’t need to sell as a result.
- successfully paying off close to $1 million of debt, including the $437k owed to unsecured creditors. Priority (employee) creditors were owed $45k and secured creditors $520,000. The cost to the company was only $240,000 as a result of negotiations.
After working closely with the business owners, we left the company in a far better financial situation than we found it in. Following our involvement, the ongoing structure and operations of the company are smoother and more financially capable than ever before.
Here’s what our clients have to say about us
“The My Business Path staff assisted us to prevent the inevitable. Their continued support once we traded out this experience was instrumental in turning our business around”
Shelly MooneyMooney's Contractors
“My business path offer an amazing service. At first I was nervous and didn’t understand the ins and outs of what was actually taking place. But Andrew and his team took great care of us and got us on track.”
Are you ready to reduce your debt?
Join the hundreds of Australian business owners we have helped to reduce their debt, save their staff and their assets and continue to trade by starting with a free consultation.