Before businesses hit a cashflow wall and need to seek help with collection, recovery & resolution, there are signs that can foreshadow payment problems. Our CEO, Michael Partis, and Rod Peters from We love Group & Eventum Optimum met up earlier this year to talk through the financial challenges faced by Australian businesses in 2025. The conversation focussed on debt resolution strategies, business restructuring, and proactive financial planning – all of which are critical for SMEs grappling with ATO debts, cash flow issues, and financial strain at EOFY ’25.
Eventum Optimum has had success partnering with accountants and finance brokers to assist with debt and financial restructuring. For Rod’s clients and companies burdened by late payments, ATO debt, or high-interest loans, restructuring can be a practical lifeline to prevent insolvency.
Economic pressure, particularly post-COVID and amid inflation & uncertainty, has disrupted cash flow across Australian industries, especially in the trades and construction. Many businesses are not just dealing with unpaid invoices, but also legacy debt positions. Michael & Rod discussed how Small Business Restructures—an “Insolvency Light” option—can help companies retain control, preserve their licenses, and avoid more drastic outcomes like liquidation, although, in 2025, SBRs are coming under more scrutiny from the ATO.
Key takeaways from Michael & Rod’s talk:
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- Cash Flow Instability Is Widespread
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- ATO Debt Compromise Is Possible
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- Early Intervention with Advisors Pays Off
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- Structure and Compliance Can Safeguard Business Owners
Rod remains optimistic about the ATO’s openness to meet some business owners half way, particularly for businesses that show proactive effort and operational viability. This is especially beneficial for companies that have been financially stable but are now struggling due to external pressures.
Early engagement with financial advisory services is critical. Many accountants are now supported by specialists like Assure Global Plus. Tools such as checklists focused on lodgement timelines and aging receivables help identify risk signals—such as chronic late payments—that may otherwise go unnoticed until a business is in serious distress. And, of course, piling on pressure every June to recoup receivables is far from the best strategy.
Rod and Michael also share the opinion that business structuring and compliance is both protective and strategic. This is particularly relevant for sole traders or partnerships who face personal risk. As financial reporting and compliance requirements become more complex, it is increasingly important to work closely with professionals and to integrate accountants into the broader strategic direction of the business.
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