Pre-Insolvency Advisors in Melbourne

It’s often underestimated how insolvency can be resolved without having a company go into administration or liquidation.

The fact is – if you see people early, you can get some remediation work done to turn things around. But if directors leave things too late, it’s very difficult to do anything other than winding the company up.

At Byronvale Advisors, we specialise in providing expert advice, support and strategies for company directors & owners facing financial difficulties and the threat of insolvency. We deliver a range of informal business turnaround and restructuring strategies including Safe Harbour arrangements. We explore all avenues to rescue your business.

Discover whether it’s possible to rescue your business before it’s too late by contacting Byronvale Advisors.

Pre-Insolvency Advisors in Melbourne

Why do I need pre-insolvency and Safe Harbour advice?

Many company directors feel alone when facing angry creditors and uncontrollable financial challenges. They often feel like they’re one of only a few people experiencing this kind of enormous stress.

Company directors must understand what pre-insolvency and Safe Harbour options are available so they can consider the best solution that encourages turnaround and recovery over administration or liquidation.

These are the circumstances where a business should seek professional guidance from a pre-insolvency practitioner to determine whether they can trade out of the situation or whether they should consider more serious measures.

Why do people ignore the early warning signs of insolvency?

We recognise several reasons business owners ignore the early warning signs of insolvency.

These are:

  •  They don’t believe there is a problem
  •  They are reluctant to address and improve business performance
  •  They are aware there is a problem, but hope things will just get better
  •  They know there is a problem but don’t want to face up to it
  •  Unable to pay its obligations in full and on time
  •  Inadequate cash flow or high cash use
  •  Poor financial control including lack of records
  •  Rapid sales growth without sufficient capital to finance it

By monitoring these warning signs, business owners can act sooner if the business looks to be in trouble.

What are the Benefits of Pre-Insolvency Advice?

By crunching the data and adding anecdotal insight to the numbers, we look for the best outcomes realistically available considering a company’s circumstances to minimise the financial impact on the company. We determine whether they can trade out of the situation or whether more severe measures are necessary. Directors making these decisions for their business should consider:

  •  Refinancing by directors or external parties
  •  Entering informal arrangements with creditors or proposing payment arrangements to the ATO and other creditors
  •  Implementing a turnaround or restructuring strategy
  •  Sale of business and/or assets for fair value on the open market or to a related entity

How do I ensure the pre-insolvency advice I’m getting is legal?

How do I ensure the pre-insolvency advice I’m getting is legal?

The best way to ensure your advice is legal is to seek qualified professionals and ensure that your advisor has the appropriate professional qualifications and memberships.

If your advisor holds no qualifications or professional memberships, it’s more difficult for problems to be dealt with, as there is no professional body to receive your complaint.

Commonly, qualified pre-insolvency advisors will be:

  •  Members of Chartered Accountants Australia and New Zealand or Certified Practicing Accountants
  •  Members of the Australian Restructuring Insolvency & Turnaround Association
  •  Admitted solicitors
  •  Registered Liquidators and/or Bankruptcy Trustees
  •  Certified turnaround professionals

When To Consider Pre-Insolvency?

Before deciding to appoint an administrator or liquidator to a company, directors should be aware of and understand their alternative pre-insolvency and Safe Harbour options so they can consider solutions that encourage turnaround and recovery over administration or liquidation.

At Byronvale Advisors, we believe there is no shame in recognising when your business is not performing well. We see it as a positive step towards running your business better. However, it is vital to seek help early from appropriately qualified advisors so they can undertake an immediate assessment of the business and its operational and financial distress and help you map a course towards a better business outcome – usually a return to solvency.


  • Advise on restructuring your business
  • Choose recovery, or insolvency
  • Lack of understanding of financial statements
  • Low gross profit margins due to high direct costs
  • Poor debtor collection management practices
  • Poor stock and poor creditor and debtor management
  • Your business is unprofitable because of fast growth
  • Find out where your cash flow is really at
  • Build a healthy and profitable business
  • Worried director dealing with financial distress