Small Business Restructuring

Small Business Recovery and Restructuring is a series of consequential decisions. Each one affects a company's obligations, its standing with creditors, and its path forward. At HM Advisory, we help business owners make those decisions confidently and stay in control of the outcome.

HM Advisory restructuring practitioners advising a business owner

What is Small Business Restructuring?

Small Business Restructuring is a streamlined, practical solution designed for companies experiencing financial pressure but with viable operations. It allows Directors to maintain control of their business while rolling out a strategic plan to manage debts, strengthen cash flow, and streamline operations.

A registered restructuring practitioner works with the Directors to assess the company's position and develop a Small Business Restructuring plan for creditors to consider.

Unlike Voluntary Administration, Directors generally continue to run the company throughout the restructuring.

Why Consider a Small Business Restructure?

A Small Business Restructure can be worth considering when there’s pressure from:

Overdue debts
Creditor demands
Cash-flow problems
ATO debt
Increasing operating costs
Short-term financial problems that have become difficult to manage

How Does Restructuring Compare with Other Options?

	Small Business Restructuring	Voluntary Administration	Simplified Liquidation
Who runs the company	Directors	Administrator	Liquidator
Can the business keep trading?	Yes	Usually, in the short term	No
Debt threshold	Under $1 million	None	Under $1 million
Typical timeframe	~35 business days	25–30 business days	Several months
Cost	Lowest of the three	Higher	Varies
Best suited to	Viable businesses with manageable debt	Larger or more complex insolvencies	Companies with no realistic future

Is My Company Eligible for a Small Business Restructure?

If everything on this list applies to you, we’re here to help:

Have total liabilities under $1 million
Be facing financial distress, such as overdue bills or Creditor pressure
Keep all tax and employment obligations current
Not have engaged in a Small Business Restructure or Simplified Liquidation in the past seven years
Not currently under Administration, Liquidation, or a DOCA.

There are additional requirements under the Corporations Act 2001, so meeting the points above doesn’t automatically make a company eligible.

A Small Business Restructuring practitioner can assess your company's financial position and explain your options before you commit to a formal process.

How Does the Small Business Restructure Process Work?

Engage a Restructuring Practitioner: Review finances and advise on solutions.
Financial assessment: Analyse assets, liabilities, and cash flow.
Plan development: Draft a restructuring plan detailing debt management and operational changes.
Creditor negotiation: Reach agreements to ensure fairness and viability.
Implementation: Directors retain control while the plan is executed.

The process moves quickly. There’s a 20-business-day proposal period, followed by a period in which affected creditors consider and vote on the proposed plan.

What Happens During the Process?

Directors remain in control of the company's affairs. The restructuring practitioner takes responsibility for formal parts of the process, including assessing the company's circumstances and providing creditors with relevant information.

Creditors then decide whether to accept the proposed restructuring plan.

We’ve Helped Small Businesses Like Yours

Small Business Restructuring offers a lifeline for Businesses under financial pressure, helping to manage debts and protect operations. Here are some of the benefits:

Retain control: Stay in charge of your business while undergoing the Small Business Restructuring Process.
Protect assets: Keep your company’s resources secure while trading continues.
Pause creditor pressure: A moratorium stops Creditors from taking enforcement action during the Restructure.
Resolve Director liabilities: Addresses Director penalty notices.
Cost-effective: Lower costs than formal Insolvency options.
Faster turnaround: Faster outcomes than formal Insolvency solutions.

Why Choose HM Advisory?

Our approach balances expertise, care, and practical outcomes, helping small businesses navigate financial challenges with confidence:

Proven experience: Extensive experience in Small Business Restructuring.
Hands-on support: Personal guidance for complex financial situations.
Solutions-focused: Practical advice to restore business health.
Fair & transparent: Protects Directors, creditors, and employees.
Results-driven: Reduce debt, streamline operations, and return to profitability.

As Small Business Restructuring specialists, we handle a high proportion of restructuring and administration appointments compared with many firms of a similar size. Where there’s an opportunity to save a business, our leadership team takes that seriously.

We’re also large enough to handle complex appointments, while retaining the direct and personal involvement of a boutique practice.

Small Business Restructuring Across Australia

HM Advisory assists businesses in Melbourne, Sydney, Perth, and Brisbane.

Melbourne Sydney Perth Brisbane

FAQs

What’s involved in a Small Business Restructure under Australian law?

A Restructure includes appointing a practitioner, reviewing finances, negotiating a DOCA and holding creditor meetings. HM Advisory oversees every step, from preparing proposals, assessing creditor responses, and implementing the plan. Whether your business operates in Melbourne, Sydney, or elsewhere, our approach ensures compliance, shields key assets, and gives business owners a structured path to stabilise operations while managing debt responsibly.

How do I know if my business qualifies for a Small Business Restructure?

Eligibility isn’t just about debt size. It’s about viability. HM Advisory evaluates debts, cash flow, and operational prospects to determine if a formal Restructure is appropriate. If your business has a chance to recover, we’ll guide you through a plan that protects assets and preserves ongoing operations.

Can Small Business Restructuring help if my business owes multiple Creditors?

Yes. HM Advisory specialises in complex debt situations. We evaluate all Creditor claims, propose a fair repayment plan through a DOCA and negotiate terms to protect cash flow and assets. Our structured approach reduces Creditor pressure, preserves trading capacity and increases the likelihood of a successful outcome for the business.

How long does a Small Business Restructuring take?

The formal restructuring process generally involves a 20-business-day proposal period, followed by a 15-business-day period for affected creditors to decide whether to accept the plan.

Can my company continue trading during a restructure?

Yes. Directors remain in control of the company's business and can continue trading while the restructuring process takes place.