A family dispute has stopped money reaching the business.
A family argument reaches the payroll forecast
A family runs a trading company alongside a separate property entity. Money intended to support seasonal stock purchases remains in the property entity’s account after a dispute about who can approve its release. The trading company has already ordered goods. The group has cash, but the business that owes the supplier cannot assume it may use it.
Identify where the money legally sits
Record the account holder, entity, amount and intended transfer. Gather the relevant company, partnership or trust documents and any funding agreement. A shared surname or common ownership does not itself establish that one entity may use another’s money.
Ask the accountant to reconcile the records and a lawyer to assess authority and any disputed rights. Distinguish access to online banking from authority to approve the underlying transaction.
Forecast the trading company’s actual resources
Prepare a forecast using funds the trading company can properly access. Show the blocked transfer separately with its unresolved conditions. Business.gov.au distinguishes actual cash movements from estimated future figures; a group balance should not disguise an unavailable receipt.
Identify the first payment the company cannot meet without the transfer. Keep the cash problem visible even while advisers assess the family dispute.
Use a documented route to resolve authority
Ask the appropriate advisers which approvals or documents are needed for a lawful decision. The interests of the company, trust, owners and other family members may differ. Separate advice may be required.
Do not bypass an account restriction, use another person’s credentials or describe a transfer as a loan after the event merely to make the books fit. Record any agreed resolution and its conditions before treating the funds as available.
Manage the commitments that cannot wait
Tell affected suppliers what the trading business can support without disclosing unnecessary private details. Seek specific changes to orders or payment dates where appropriate and retain confirmation. A requested extension is not an accepted arrangement.
Compare a smaller stock purchase or alternative funding on its actual terms. If the company cannot meet debts while authority remains unresolved, obtain prompt financial and insolvency advice instead of waiting for the family disagreement to settle.
Separate the group’s cash from the company’s available funds
Identify the account holder and obtain advice on transfer authority.
Plan the company’s commitments without the blocked funds until a lawful release is confirmed.
Contact CRP about coordinating business-debt support when expected family funding is unavailable.