Commercial pressure is not a substitute for a funded plan. Identify who is asking you to continue, what they rely on and what risk the company would take.
Corporate Recovery Partners
01 / 06
Everyone wants trading to continue but nobody has funded the plan
A builder’s largest customer insists the company keep working despite unpaid invoices. A shareholder says stopping would destroy the brand, while a supplier offers more credit only if the director signs a guarantee. The director is hearing three reasons to continue but has no combined plan showing how the next fortnight’s obligations will be paid.
Write down the proposed course and the money, approvals or concessions required to support it. Ask each party to confirm its actual commitment in writing. A request to continue is not the same as funding the work.
Identify whose interests are served. A customer wants completion, a shareholder wants value preserved and a supplier wants payment; none necessarily sees the company’s whole position.
List the debts likely to be incurred, receipts that can be relied on and existing overdue obligations. Include the cost of finishing work already promised.
Test the plan without unconfirmed support. If it depends on a customer paying early or a shareholder lending more, state that condition clearly instead of presenting continued trading as already funded.
ASIC warns against incurring debt while insolvent. Seek qualified advice before proceeding where payment ability is in doubt. Ask about the actual options and any relevant protection requirements; do not assume a rescue intention provides protection by itself.
Give the adviser the pressures and conflicts as well as the figures. A guarantee request or related-party interest can affect the decisions needing separate legal review.
Record what has been decided, who may commit the company and what conditions must be satisfied before further work proceeds. Ensure project staff receive clear instructions.
Review changes promptly. If promised funding disappears, the original decision needs reassessment; it should not continue automatically because work has already restarted.
