SUCCESS STORY
Professional Services Business Debt Restructure
Professional Services
about the client
‘Turning to Actium was a last resort because we didn’t really know how we were going turn things around. Amazingly within a few weeks, we not only had a plan, but our debt was considerably reduced and best of all, our business is now actually growing again’.
what their challenges were
The client’s previous financial management had resulted in more than $230,000 in accumulated business debt, which had become increasingly difficult to service. High interest costs, stagnant growth and negative cash flow had created an unsustainable financial position. Their advisor’s solution to their shout out for help was not to reduce the amount of debt payable – but to adopt a payment plan for the firm to pay the full amount. This was not realistic; the owners clearly needed a more viable alternative.
how actium partners helped
After engaging Actium Partners, our specialists thoroughly assessed the client’s financial position to determine a realistic and sustainable way forward. The professional services business restructure required specialised business debt restructuring to not only reduce the accumulated debt, but make the remaining debt serviceable while creating a stronger foundation for the business.
Throughout the process, we explained each stage of the restructure in clear, straightforward language, giving the client a clear understanding of their position, available options and the path forward.
So, before their restructure, our client had:
- over $230,000 in debt
- no realistic plan to service this debt
- a negative business cash flow
- zero/ stagnant business growth
After the restructure, they now have
- reduced the $230,000 debt to a more manageable $35,000
- an ATO / Creditor approved management plan to allow the debt to become serviceable
- a positive cash flow
- Revitalised business growth
Overall results
Immediate saving – $195,000
