Ongoing impact of Covid-19, and what you should do about it
How has Covid-19 effected your business? Can and will your customers pay you? With Victoria representing 23.3% of Australia's Gross Domestic Product, its fourth lockdown will impact you and your business - regardless of your location.
The Federal Government is trying to solve these Covid-19 induced problems. This includes new insolvency laws for small businesses. For example, since 1 January 2021 a small business restructuring plan and a simplified liquidation framework has been in place. The new laws seek to help small businesses emerge from their financial problems. Then, if they cannot, the small business can liquidate quicker and cheaper.
You may or may not need to use these processes. But what impact will they have on your business if your customers do?
Firstly, if you are (or should be considering) using these new laws, you should organize your financial records sooner rather than later. Secondly, and even if you believe that these laws do not directly impact you – you still need to become an increasingly savvy creditor. With less money around, there is a greater fight for what remains.
When in doubt, think Boy Scout. BE PREPARED!