Summer holidays. For many of us, that means family gatherings, beach breaks and test match cricket.
For many businesses, it means the office or worksite closes for potentially up to a month. What results? A cashflow shortfall in the new year due to limited billable income whilst continuing cash outflows, particularly for employees’ annual leave and superannuation. Without sufficient cash reserves, businesses may find themselves unable to pay staff and suppliers.
Appointing external administrators may be appropriate where the business’s situation is terminal. However, where a better outcome is foreseeable, company directors can protect themselves against insolvent trading risks by utilising the safe harbour insolvency regime.
The…
