When a business hits financial distress, most directors assume insolvency is inevitable. But it’s not. Most businesses can be stabilised with the right plan, provided action is taken early and decisions are made with a clear head.
At Thryvv, our role as Director’s Advocates is to help directors understand all their options before taking irreversible steps. Insolvency may be one of those options, but it’s rarely the first or best one.
The Rise of the “Quick Fix” Market
Over the past year, we’ve seen a surge of pop-up advisory firms promising “fast ATO debt fixes” or “simple restructuring solutions.” These operators typically push clients into a Small Business Restructuring (SBR) process, whether it’s appropriate or not.
The problem is that while the SBR framework can be a useful tool, it’s not the easy solution it appeared to be 12 months ago. Many of these quick-fix firms operate on a transactional model, focused on generating fees rather than achieving sustainable outcomes for business owners.
SBRs Are Not the Easy Option They Once Were
When the SBR framework was first introduced, it gave small businesses breathing space to address manageable levels of debt.
But today:
- Creditor attitudes have hardened. Many creditors no longer accept proposals that don’t demonstrate genuine future viability.
- The ATO has lifted its standards. They’re now scrutinising proposals closely to ensure the business can meet its commitments after restructuring.
- SBRs can affect future financing and trade accounts. Many lenders and major suppliers now flag SBRs in credit reporting, which can restrict access to finance or result in reduced trade terms and create serious implications for ongoing operations.
- Root causes remain unaddressed. A SBR can restructure debt, but it doesn’t fix cash flow issues, broken business models or pricing gaps.
Just because the debt can be addressed through a SBR doesn’t mean it should. Without rebuilding the financial foundation, the same problems will reappear, often worse than before.
Insolvency Should Never Be the Default Option
Formal insolvency plays an important role when used properly, but it should never be treated as the first step. If a business can be repaired, it should be. If it can’t, insolvency should be managed in a way that protects the director and preserves value where possible.
Our team works closely with insolvency practitioners, lawyers and financiers to ensure:
- The director’s legal position is protected.
- Information is accurate, complete and compliant with APESB standards.
- Every possible recovery option is explored before liquidation is considered.
This approach ensures directors retain control over the process, rather than being swept into it by panic or poor advice.
The Real Goal is Saving the Business, Not Signing It Away
At Thryvv, we believe in a repair-first approach. We start with the fundamentals — control, cash flow and governance — before recommending any formal insolvency process. Our focus is on stabilisation and recovery, not simply filing forms.
Our process includes:
- Assessing the underlying business model and financial structure.
- Rebuilding short-term cash flow through realistic forecasting and cost control.
- Negotiating directly with key creditors or the ATO to create breathing space.
- Implementing governance frameworks that protect directors under Safe Harbour provisions.
- Creating financial reporting systems that support informed decisions.
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Only when the evidence clearly shows that the business is not viable or requires a structural reset do we move toward formal insolvency mechanisms such as Small Business Restructuring, Voluntary Administration or liquidation — and even then, the process is strategic, not reactive.
The Bottom Line
As qualified accountants and bookkeepers, we operate under APESB professional and ethical standards, even though the pre-insolvency industry isn’t regulated. That means our advice is grounded in professionalism, transparency and accountability.
Insolvency practitioners trust the information we provide because they know it’s accurate and complete. Directors trust us because we act as their advocate, not a transaction broker.
Small Business Restructuring can be powerful — but only when it’s the right tool, used for the right reasons, at the right time.
At Thryvv, our mission is simple:
To help directors regain control, protect their position and rebuild with confidence, avoiding insolvency wherever possible, and managing it strategically when it’s not.
Need Assistance in Managing ATO Debt?
Book a Strategy Call with us
Book a free strategy call with us today and take the first step toward getting back in control. We’ll help you understand your position, weigh your options, and build a clear path forward — without judgement, pressure, or jargon.
