How do you know if your business is insolvent or close to being insolvent?
Here are ten signs:
- Your bankers bounce a cheque or direct debit.
- You are constantly operating at the ceiling of your overdraft.
- Your trade suppliers are overdue.
- You receive solicitors’ warning letters, or debt recovery proceedings.
- A court judgement is made.
- Your PAYG, GST or Super is not up to date.
- Your tax returns and BAS statements are not up to date.
- You do not have current management information showing the financial position.
- You have an overdrawn director’s loan account.
- You have payment plans in place.