Supporting small business to repay debt

The Australian Banking Association (ABA) has collaborated with Chartered Accountants Australia and New Zealand (CAANZ), CPA Australia (CPA), and the Australian Taxation Office (ATO) to create a support-based factsheet for small business customers who might be struggling to make repayments.

Many things can cause a business owner to have difficulties repaying their debts and it’s easy to get overwhelmed in this situation. The factsheet builds on a campaign from the ABA which reminds customers facing financial difficulty that they don’t need to ‘tough it out on their own’.

ABA CEO Anna Bligh urged small business owners to reach out to their bank if they were worried about their finances.

“If you’re feeling stressed about your finances or existing debts, seek help from your bank, accountant, or a financial counselor right away. For any debts you have with the ATO, get in touch with them early on so they can work with you on managing the debt.”

ATO Assistant Commissioner Anita Challen said the ATO is encouraging businesses to engage early to get on top of their debts.

“We want to work with businesses to help them get back on track with paying their tax debts. For small businesses who need support, there are a range of support options available. We encourage small business owners to reach out to the ATO or a trusted advisor early to identify options that may help their business remain viable.”

Ms Bligh said that the financial services industry knows that customers are feeling the pinch of the cost of living, and this is especially true for our small business owners.

“Our small businesses are incredibly resilient, but banks want customers to know they are not alone if they feel like they are struggling to make repayments.”

“Don’t be afraid to contact your bank as soon as possible. They have specialised teams ready to help, and the sooner you get in touch the sooner your bank can review your circumstances.”

CEO of Chartered Accountants Australia and New Zealand (CA ANZ), Ainslie van Onselen has encouraged small businesses to work with their chartered accountant at the first sign their business may be under financial stress.

“Chartered accountants have the expertise to help your small business find the best path forward from looking at your business structure, to identifying cash-flow improvements and helping manage outstanding debt.

“In a cost-of-living crisis, having a chartered accountant in your corner supporting your business is a great way to manage through economic and financial pressures.”

CPA Australia’s Chief Executive Officer, Chris Freeland highlighted the critical nature of Australia’s small businesses and encouraged those struggling to seek support.

“Small businesses are an essential part of our economy and millions of enterprising Australians live and breathe their business. This is great when things are going well, but circumstances can change quickly and leave small business owners feeling overwhelmed and under pressure, particularly when dealing with their finances.

“Business success requires informed decision-making, healthy financials and great advice. Understanding the overall position of your business, including managing your debts and tax obligations is critical to survival and growth. When you need help with debt, seeking support becomes your next good business decision.

“Seeking advice from your accountant or bank will give you a better understanding of your options and allow you to make more informed decisions. It could prove to be the best thing you did. CPA Australia is committed to supporting small businesses navigate the ever-evolving regulatory and economic environment.”

Click here to view the fact sheet.

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Small Business