At Tax Negotiators, we know the challenges businesses in Australia face when juggling all their financial responsibilities and keeping creditors happy while focusing on running a business. The stress can be debilitating, whether you’re a sole trader or managing a large firm.
We’re passionate about helping your company with a business debt management plan or a business debt action plan to lower your ATO tax debt, keep the debt collectors at bay, and keep things bubbling away and making a profit.
Our financial experts are experienced and knowledgeable about debt management strategies in companies in Australia, and we can help your business with money management solutions and a business debt action plan tailored to your needs to give you breathing space. We can help you with the following:
- Devise a business debt action plan.
- Reach your financial goals with a business debt management plan.
- Control your business’s financial future.
- Strengthen your business success.
- Get genuine help to manage your money.
Debt Management Plan vs Debt Consolidation
The Australian Taxation Office (ATO) is one of the biggest triggers for business liquidations, although you may have other unpaid creditors and wonder how to cover them all. So, especially if you’re juggling your tax debt, and financial obligations, it’s time to take debt action before the ATO does so.
As tax debt experts, Tax Negotiator professionals work with you to assist in managing your tax debt by negotiating tax relief with the ATO on your behalf and formulating a business debt action plan. We can also help pay out your tax debt or restructure your business with mortgage refinancing. However, we must discuss whether a debt management plan is better than debt consolidation.
Consolidating Your Business Debts
When you have a lot of different debts and you’re trying to juggle them by taking from Peter to pay Paul, taking timely business debt action by consolidating them into one, easy-to-manage repayment makes sense. This kind of business money management means your bookkeeping is simplified, the interest rate on the consolidated debt loan can reduce the overall interest rate you’ve been paying, and your financial hardship can be resolved much faster.
But you need to be aware that one of the downsides is that your credit rating may suffer by consolidating your debts in Australia, even though there are ways to prevent this from happening. There are four major ways you can consolidate your business debts, all with upsides and downsides.
Debt Settlement:
It’s not a matter of a debt management plan vs debt settlement because to settle, you need cash to pay all business loans, other loan repayments and personal debts through a negotiator, whereas you need business loans to consolidate. If you don’t have the cash, either in your savings, from a personal loan or business loan, this isn’t a choice you can make. So, with debt settlement, you consolidate your repayments into one amount paid to a debt settlement firm that distributes the money amongst creditors.
Debt Consolidation Loan:
Here you ask a bank or lender for a loan to pay all your debts in full. You end up with just one big debt but only one repayment to make each month. The debts show “Paid in Full” on your credit rating with a zero balance.
Debt Management Plan:
This debt management for business strategy requires a credit counsellor to negotiate with your creditors so you can make manageable monthly repayments on each debt. This will freeze your credit account for a time, so you cannot open new accounts or buy anything new.
Balance Transfer Cards:
Balance transfer cards is a kind of debt consolidation that sets your interest rates to zero for a short time and allows you to pay off your debts without the worry of exorbitant finance charges.
Your bank may be open to negotiation on your consolidation loan to spread it over a longer term, thereby reducing the interest payments and monthly repayment amounts. The bank may charge a higher rate since it would see your loan at increased risk of default. Even so, this can give you some breathing space and keep the debt collector at bay.
Business Debt Action
If you’re looking for a company near you with credentials for organising a business debt management plan to cover your outstanding debts, don’t hesitate to get in touch with us at Tax Negotiators today. We are business debt management experts and assist small businesses and people in situations like yours every day to keep the wheels turning and avoid bankruptcy. We offer tax debt management Australia-wide. Contact us today at 02 4207 9815 or email help@taxnegotiators.net.au.