Restructure before cash runs out

The window closes fast

The hardest restructures are the ones directors start after the cash is almost gone. By then, the ATO, suppliers and payroll are all asking for the same dollar, and the business loses room to negotiate. The better question is not whether trouble exists, but how much time still remains. Every week lost makes the next conversation tighter. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

A quick restructure review is about protecting choices, not proving failure. Business.gov.au says companies in financial trouble should get help early, and that insolvency paths include small business restructuring if the company is eligible. The point is to act while there is still enough cash to keep trading and enough records to test the options. ([business.gov.au](https://business.gov.au/finance/financial-trouble?utm_source=openai))

Count the cash runway

Start with the runway. Add the cash in bank, expected receipts you trust, and the payments that must go out before the next milestone. Then divide by weekly outgoings. That simple number tells you whether you have two weeks or six, and whether you can still negotiate from a position of control. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Do the same for pressure points. List wages, super, tax, rent, plant finance and key suppliers separately, then mark what must be paid now, what can wait, and what could be reworked. Business.gov.au recommends identifying what you can afford to pay now and what you can pay later before you choose any payment plan. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Source: Official guidance

List the options now

With that picture in hand, write down the options that exist today, not the ones you hope for next month. For a company, small business restructuring may be available if the debt is within the current limit and the company is otherwise eligible. The legislation sets that liabilities test at no more than $1 million when restructuring begins. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

If the company does not fit that path, don’t stall. Business.gov.au notes that companies can still look at other insolvency options, and a financial counsellor or adviser can help test what is realistic. The practical aim is to avoid burning another month on a plan that cannot be used properly. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

Talk to creditors early

Then contact the creditors who matter most. Start with the people who can shut you down fastest, usually the ATO, landlord, financiers and any supplier who can stop work. Business.gov.au says speaking to creditors early can prevent late penalties or debt collector action, and you should explain the situation and ask about hardship or a payment plan. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Keep the conversation short, factual and recorded. Say what you can pay now, what date you can pay next, and what evidence supports that offer. If the creditor wants a fuller proposal later, fine, but do not let the first call become a vague promise. A clear partial payment is better than a delayed apology. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))

Get advice this week

This week, get a professional to test the numbers before they test you. A restructuring practitioner or insolvency adviser can check eligibility, pressure-test the cash flow and tell you whether the file is strong enough to progress. If it is not, you need to know that now, while you still have room to change course. ([business.gov.au](https://business.gov.au/exiting/bankruptcy-and-insolvency/insolvency-for-companies?utm_source=openai))

Your next step is simple: calculate your cash runway today, list the options that are actually open, call your key creditors, and book advice before the week ends. If you want help turning the records into a practical debt restructuring conversation, call CRP today. CRP coordinates independent qualified professionals, and this article is general information only, not legal advice. ([business.gov.au](https://business.gov.au/finance/financial-trouble/manage-being-in-debt?utm_source=openai))