When the directors of a national medical company were having difficulties with the company’s superannuation payments, they turned to their finance manager for help. Working with a team of finance professionals, the finance manager was able to solve the super dilemma and improve the company’s cashflow.
Experiencing difficulty covering superannuation payments, the directors of a large medical company approached a FinanceCorp Finance Manager and asked if he could provide them with financial advice to help get them back on track.
Their finance manager advised them that although he could not give them financial advice, he could direct them toward the help they needed, specifically in the way of independent accounting and legal counsel. The finance manager had soon formed a team with several related professionals to sort the problem out.
“We worked with the accountant who did some cashflow forecasting and some remodelling of their financials,” their finance manager explains. “We worked with our solicitors too. They suggested a minor corporate restructure.”
Once the directors understood their options going forward and had a clear idea of what was required of their company financially, their finance manager then took care of the rest.
“Once they had received independent advice, we were then able to approach a funder with a full proposal that would assist the company, not only in bringing their super up to date, but also in ensuring that it stayed up to date,” their finance finance manager says.
“We were also able to put in place plans for their GST and making sure that that was always covered, too.”
Further to the commercial proposal worked out by their finance manager, the company directors also found themselves in a better position regarding their personal assets, which were protected should something go wrong in the business.
“Under the restructure, the directors’ homes and the directors’ guarantees were removed from the transaction,” the finance manager explains. “If the company had failed and gone into liquidation previously, their personal assets could have come into play.”
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** Names have been changed to protect clients’ privacy.