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Clients suffering financial distress? 
Are you witnessing financial struggles daily in your interactions with clients? Many individuals and businesses in Australia are really starting to feel the pinch.
Insolvencies are on the rise.
Australian Financial Security Authority March quarter 2023 statistics revealed a 12.6% increase in personal insolvencies from the March quarter 2022.
Luke Achterstraat, CEO of The Council of Small Business Organisations Australia told ABC News recently that he fears many small retailers and services will decide they have had enough and choose to close over the next six months because their profits are no longer worthwhile. "The feedback we're hearing across Australia is that it's this perfect storm of costs, costs and more costs, be it energy, rent, even insurance premiums are increasing as well," he said.
Our collective RSM Restructuring and Recovery team's focus is to help people to understand their financial options.
In some cases, bankruptcy or insolvency can be avoided, or if that ends up being the outcome - we support people to best navigate a challenging time.
We’re here for you or your clients. We’re ready to have the tough, but necessary financial conversations. Book in a free, confidential phone consultation with our experienced Restructuring and Recovery team on 1300 263 816 or start a conversation with the RSM Options Hub.
Until next time Thanks for reading our quarterly RSM Restructuring and Recovery e-news update. If we can help your clients take back some control of their financial situation and review their options, please be in touch. We are ready and able to assist with the tough, but worthwhile conversations and decisions.
Best regards,
Restructuring and Recovery team
BLOG POSTS
3 rules to protect your business when assisting financially distressed clients. 
As a professional, when you’re working with clients who may be experiencing financial distress there is a lot to consider - including being properly remunerated for your services.
For lawyers, accountants, financial counsellors and other trusted advisers who people typically turn to in times of hardship, the risks can be significant. Read our blog post covering three rules to protect your business when assisting financially distressed clients.
Business viability: options for SMEs in financial difficulty
Travis Kukura, Principal, Restructuring & Recovery at RSM based in Perth, shares his top tips for recognising signs that point to business unviability, and options for business owners to turn things around.
“We say it all the time: the earlier you act, the better. It puts more options back on the table. A lot of people come in for just one meeting, and we never see them again - that’s a good result. They get new insight, take action and get back on track. At the other end of the spectrum, we end up engaged as a liquidator to shut down the business.”
Safe Harbour: 101
The Safe Harbour initiative is designed to support companies in financial distress and can provide your client with a defence against personal financial claims that could arise as a result of insolvent trading. Our RSM Safe Harbour practitioners are skilled in developing restructuring plans that give your client the best chance to turn their business around.
We can support your clients by:
● Explaining how Safe Harbour works
● Evaluating their company’s situation
● Offering advice on specific challenges and opportunities
● Helping to create a sound restructuring plan
● Supporting ongoing compliance
