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Security operation, Regional NSW
- Estimated Savings: $350,000
- Total Cost: Less than 10% of savings
- Case Type:ATO Debt
A major customer to our client’s business, who was a subcontractor to a large mining firm, was engaged in a dispute with the mining operators, owing the customer significant funds. In turn, the customer was unable to pay our client for security services which our client had already provided. The flow-on effect saw the directors unable to meet their ATO obligations. With ATO payment offers having been rejected, the family home mortgaged against a business loan and numerous personal guarantees, not only did the clients face losing their business, but also their home seeing both directors fall ill with major health complications.
Rebuild Now arranged the valuation of business debtors by a factoring and debt collection firm and had valuations of vehicles and other assets carried out by experts. An existing company, within the client’s business structure, purchased the assets and provided finance. Commercial documents were drafted by lawyers. The transactions were transparent and commercial, and in the best interests of all stakeholders. The business continued. The bank did not force the sale of the family home, as throughout the restructure, mortgage payments were maintained.