ATO

Payments to key suppliers are crucial to the viability of any business, especially when suppliers and wholesalers account for the majority of a company’s turnover. But how does a business remain on good terms with a supplier when unable to keep up with their obligations?

An engineering business had accumulated a $1,050,000 tax debt as a result of rapid growth in the civil infrastructure sector. This became a problem when the client needed to show equipment lenders a clear portal for further equipment purchases that needed financing. Hermes reviewed the client’s debtors as well as their other available assets, including a number of unencumbered heavy equipment items and some property with second mortgage equity.

A regional transport business encountered a shortage of cashflow after they discovered that their accountant had not been correctly accounting to the ATO.

How does a mining services business (extraction optimisation) buy time time to restructure its cost base without entering into Voluntary Administrations?

A business specialising in earthworks in the mining and infrastructure sectors suffered when a developer the client had worked for failed.  As a result the client booked a substantial loss.