Locations
Head Office: Burnie, Tasmania
Regional Office: Rosebery, Tasmania
Red Earth Capital (Tasmania) Pty Ltd
ABN: 98 374 742 974
Principals: Allan & Ruth Pearson
E: allan@redearthcapitaltasmania.com.au
M: 0437 166 840
E: ruth@redearthcapitaltasmania.com.au
M: 0437 164 623
Services
- Cashflow Consultancy
- Restructuring Advice to Directors & Management
- External Administration of Structured Cost Cutting Programmes
- Equity and/or Debt Capital Raising
- Business Finance Solutions
- Pre-insolvency Consulting
- Pre-packaged Insolvency Solutions
- Business Turn-around Solutions
- Company / Trust Establishments
Who we can Help!
- Sole Traders
- Micro Business Owners
- Small & Medium size companies
- Trusts
- Accountants / Tax Agents
- Finance Brokers
- Mortgage Brokers
- Financial Advisors
- Solicitors/lawyers
Equity Funding Solutions
Raising Capital, Creating Liquidity, & Providing Value at Exit!
YouSelect Pty Ltd
M: 0437 166 840
Red Earth Capital
Corporate Recovery & Turnaround Solutions.
We can help to provide YOU with the best solutions to facilitate your business turn-around.
Is your business a survivor?
Do YOU have the resolve to overcome obstacles?
- Do you have a current business plan?
- Do you prepare regular management accounts?
- Do you prepare and review aged creditors' and aged debtors' lists?
- Do you review costs and overheads as well as sales?
- Do you prepare annual projections and cash flow forecasts?
- Is actual performance reviewed against your business plan?
- Do you and your fellow directors meet regularly to discuss progress?
- If you're on your own, do you set aside time just to understand your financial postion?
If you are doing all these things, then you are likely to notice signs of an impending solvency crisis much sooner than others!
If you are not preparing this type of management information, contact Allan at Red Earth Capital for a free one hour telephone consultation to discuss your management information needs.
Help for Directors
When a company is in financial cashflow difficulties, it is essential for directors to seek competent, professional advice - QUICKLY. Once the prospect of failure looms, it can be difficult to think rationally about the business you are running. You may have given personal guarantees for company debts or you may be so busy fire-fighting that you can't see a way forward.
First, you need to get the full picture of your situation.
Our corporate solutions team will help you to establish what options might be available. We can help in any of the following ways:
- find new sources of funding, or, negotiate with your existing lenders;
- restructuring your balance sheet;
- help you trade out of your difficulties using the corporate solvency tools of voluntary administration or by entering a voluntary deed of company arrangement.
- the sale of your business;
You might be worried about personal guarantees you have given for company debts or be worried about personal liability. Whatever your concerns, you can be sure Red Earth Capital's team will be helping you every step of the way.
Help for Accountants / Tax agents
Our focus at Red Earth Capital is providing solutions to companies and individuals facing financial difficulty. We are not an accountancy or tax practice and this gives us a competitive advantage over many other insolvency providers. We work alongside accountants / tax agents to provide the specialist advice which you may not have in-house, so that the best outcome for all the stakeholders in a business is achieved. We are proud that many businesses referred to us remain with their accountants in the years ahead.
Our main services for accountants include:
- restructuring companies using the CVA (Company Voluntary Administration) tool
- providing technical insolvency support
- advising your clients on turnaround and insolvency matters
- providing strategic exit solutions for owner managers looking to exit a business in a tax efficient way
- Restructuring the debt of distressed sole trader businesses or partnerships
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Welcome to Red Earth Capital (Tasmania)
Red Earth Capital is a niche Business Consultancy Practice offering Cashflow & Solvency Advice, and Business Structural advice. We pride ourselves on keeping up to date with the latest developments in our field so that our clients can be certain that the advice they get is technically excellent.
Australia, in the post Global Financial Crisis (GFC) market has a government acknowledged two speed economy, and a severely constrained lending environment that has created significant problems for undercapitalised Australian business enterprises. The implications of insufficient capital may manifest itself in many ways including…
- impediments to business growth,
- working capital and cash flow issues, and
- insolvency,
which may lead to business failure and liquidation.
Red Earth Capital (Tasmania) is a specialist advisory firm that provides solutions to undercapitalised small to mid-tier Australian businesses. The services offered by Red Earth Capital (Tasmania) include, but not limited to: capital raising, corporate finance, pre-insolvency consulting, and turn-around management solutions.
1. Capital Raising
Through an association with YouSelect Pty Ltd (an Australian Small Scale Offerings Board [ASSOB] sponsor), Red Earth Capital (Tasmania) is able to assist with the raising of up to $5 million without a prospectus and up to $10 million without prohibitive set up costs. ASSOB is the largest capital raising platform for growing, unlisted companies in Australia with over $120M raised in the last two years.
2. Corporate Finance
Red Earth Capital (Tasmania) has well established and long standing working relationships with licensed brokers and lenders from across all faculties of the Australian lending markets. We have access to the major institutions, second tier, non-conforming lenders, private capital, and specialist lenders.
3. Pre-Insolvency Consulting
Our pre-insolvency consultancy provides business management with quality advice of a general nature, and we can assist the directors/owners manage the insolvency process with the aim of securing a better outcome for both - directors and creditors.
4.Turn-around Management Solutions
If your business is experiencing or heading into financial difficulty it can be a very stressful time and you may find everyone you speak with has an opinion on how best to "steer the ship" out of trouble. Red Earth Capital (Tasmania) are specialists in business turnaround and enterprise restructuring.
Remember: Tomorrow Can Be a Better Day!
Like most business owners, you have made many sacrifices for your business, working all the hours under the sun (or rain) just to make ends meet. Sometimes borrowing money on your personal credit cards and maybe even remortgaged your family home to pay off business debts.
Up until now you have managed to get a wage and pay the bills. Now your bad business debt has piled up and it seems like there is no way out. We at Red Earth Capital (Tasmania) understand how hard this can be. We care about our clients and take the time and effort to come up with the best solution for your personal sacrifices made in building your business and to paying your business debts.
We can help you decide if insolvency is the only way out, and if so, make the transition as smooth as possible. We are the best insolvency experts that know the ins and outs of pre pack administration, creditors voluntary liquidation, company administration and company voluntary arrangement.
What Can Red Earth Capital (Tasmania) Business Consultants Do For You?
- Help reduce the stress of debts for You and/or your company
- Analyse the options and structural solutions for you and your company
- Arrange finance or introduction to private investors
- Explore options of Bankruptcy, Liquidation, or Administration
- Help limit/eliminate your liabilities
- Stop court orders and bailiffs' from further action
- Provide options for the future
Remember: YOU NEED OPTIONS NOW,
and, We at Red Earth Capital (Tasmania) can help provide them to you!
Our competent team has countless years of experience and will offer active support and business solvency advice to guide you through the difficult and possibly hazardous world of poor cashflow. We specialise in "small and medium enterprise solvency solutions" and can give general information and counsel to help avoid forced insolvency procedures.
We give reliable, structured general advice to companies and individuals on the options available to undertake their business debt collection problems.
If you want to...
- save your company,
- close your business, or
- make a fresh start - then...
we at Red Earth Capital (Tasmania) can assist you!
Why bother to liquidate your Business at all?
Sometimes a company will be in the situation where it has ceased to trade and has no assets and we are asked by a director whether they should bother to liquidate the company. After all, is it not an option for the director to do nothing and let a creditor pay to have the Court order the winding-up of the company? as callous as that sounds, many directors do just that - howver, our philosophy is that Directors should take responsibility for their actions and resolve the insolvency issue/s by paying for a Creditors Voluntary Liquidation? In the long run, this option will be far cheaper for the director/s!
Directors should consider the following reasons to liquidate a company:
- Mounting problems with the ATO - A director runs the risk that the ATO will one day serve a Director Penalty Notice on the company and the directors, that can make the directors personally liable for the company's debt to the ATO. If a director abandons the company but doesn't liquidate the company then there is a significant risk that Legal Notices and the Director Penalty Notice will not be received by a director - the unfortunate effect is that the director becomes personally liable for the entire ATO debt, and all legal enforcement costs. We've explained more on this below.
- Problems with other creditors - When a company simply ceases to trade and there are outstanding creditors, then those creditors will continue to pursue the company for payment. Sometimes that will be by way of Legal Notices and sometimes a continual stream of irate phone calls from creditors. The only effective way to stop the hassles is to put the company into liquidation and thereafter creditors are dealt with by the liquidator, not the directors.
If you are being hassled by creditors or are concerned about receiving a Directors Penalty Notice then you should initiate the liquidation of your company through a low cost Creditors Voluntary Liquidation.
Director Penalty Notice - Section 222 Notice
Have you received a Director Penalty Notice? As a director, one of the most important notices you need to be wary of is a Directors Penalty Notice which is issued by the Australian Taxation Office under Section 222AOE of the Tax Act. If you get a Directors Penalty Notice you must act immediately to avoid personal liability.
The ATO has the power to collect outstanding deducted taxes by making directors liable for a "penalty" for the same amount as the unpaid tax. These provisions create a liability to the ATO in the name of the director. Each director of a company becomes separately liable for the full amount of the penalty. If a director receives a Director Penalty Notice it requires the directors to take one of four specific actions within 14 days of issue or the director will be personally liable for the debt:
- Pay the debt in full;
- Enter into an instalment arrangement to repay the debt;
- Appoint a Voluntary Administrator; or
- Appoint a Liquidator.
If the company is solvent, it should pay all of its creditors on time, and that includes:- BAS, PAYG tax, SGC, Income Tax, suppliers, et cetera.
Directors of companies that cannot pay their liabilities on time, usually after consultation with the help of a Pre-insolvency consultant decide to appoint a liquidator by way of Creditors Voluntary Liquidation, or appoint a Voluntary Administrator to help make the critical financial decisions needed. If you are close to the 14 days expiring, you'll be pleased to know that we are able to organise the appointment of a liquidator/administrator within a couple of hours.
So what should you do? Act immediately!
Do not think it will just go away - IT WILL NOT! You must take decisive action Now!
Call Red Earth Capital (Tasmania) - TODAY on
1300 8 735328
for a free 1 hour telephone consultation!
We accept Bartercard!
Elegantly Decorated Cakes by Ruth for ALL Occasions!
0437 164 623
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