What is business turnaround and restructure finance?

Looking to get your business back on track? Find out what’s involved with business turnaround and restructure finance.

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Trying to rescue a struggling business can be a harrowing experience, with the threat of insolvency lurking behind every business decision. Financial troubles in your company are often caused by external factors that may be beyond the control of directors or shareholders. Whatever the reason, when problems begin it is important that the company acts calmly and quickly.

If you are trying to turn your business around, there are financing options available. Learn more about them, and if it could be an option for your business, in this guide.

What is business turnaround finance?

Some lenders in Australia specialise in restructure and turnaround finance. These services can provide you with the necessary funds to keep yourself trading, and also help you identify the changes that will need to be made to recover. Restructure finance can also help you finalise trading while minimising further loss to the business.

Moula Business Loan

Moula Business Loan

  • Borrow up to $250,000
  • Flexible lending criteria
  • No hidden fees
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100% confidential application

Moula Business Loan

An unsecured business loan with online application and no upfront or early repayment fees.

  • Interest rate type: Fixed
  • Loan security: Unsecured
  • Upfront fee: 2% Establishment fee
  • Minimum loan amount: $5,000
  • Maximum loan amount: $250,000
  • Maximum loan term: 2 years
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Business lenders you can compare

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Moula Business Loan
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Swoop Finance Business Loan
1 to 30 years
Depending on your loan contract
Apply online and borrow between $1,000 and $100,000,000. Options for good and bad credit borrowers.
Lumi Unsecured Business Loan
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Valiant Finance Business Loan Broker
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
OnDeck Business Loans
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.
Octet Trade Finance
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
Prospa Business Loan
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $300,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
ANZ Secured Business Loan
Up to 15 years
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
ANZ Unsecured Business Loan
Up to 15 years
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Westpac Business Loan
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.

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What are my options?

Depending on the lender you opt for, restructure finance can provide you with a selection of potential routes to go down:

  • Restructuring support

A restructuring company works with you to analyse all aspects of your business, identify areas for improvement and find where profitability can be increased. It can also provide support and advice for stakeholders who may be unsure of what to do next.

  • By acting early, you can potentially save the company from taking more drastic action later on.
  • In the wrong hands, restructuring can be a frustrating, expensive and an ultimately unsuccessful pursuit.
  • Debt restructuring

If you are consistently falling behind with your payments, you can opt for debt restructuring to have the company help you negotiate with creditors to give you more time to pay or find alternative funds and payment plans.

  • Companies that maintain regular communications with their creditors can be optimistic about the chance of successful negotiations, especially with the backing of an experienced restructuring service.
  • Ultimately the fate of your company lies in the hands of creditors who will want guarantees of repayments as soon as possible.
  • Cash management

For a business feeling the effects of a sudden drop in sales, a short period of assisted cash management can help ease the minds of stakeholders and creditors. This will often include methods such as improving the company’s forecasting models and reviewing its cash requirements and management options.

  • This option provides an efficient means of highlighting problems within your company and identifying solutions.
  • Cash management will do little to confront existing debt problems or deal with larger issues created by falling revenue.
  • Voluntary administration

An independent administrator will be appointed by the director to assess the likelihood of the company being able to continue trading. This will usually involve meeting with creditors and attempting to come to an agreement regarding missed or overdue payments.

  • This is easy and inexpensive to carry out
  • It provides a comprehensive review of the company that can be used to identify problems and strengthen for the future.
  • Attempts at voluntary administration are often misguided and requires expert guidance to have any chance of success, with only a fraction of businesses saved.
  • Receivership

This involves the bank or another influential creditor appointing a receiver with the sole objective of recouping funds to settle the company’s debts. This can sometimes be achieved by selling assets, but may require the sale of the entire company.

  • The bank can go a long way to steadying the ship and taking back control of a chaotic business.
  • Liquidation is rarely avoided, with little incentive for the receiver to do more than reclaim creditors’ money as quickly as they can.

What to know before you apply

The avenue you choose will depend on the current status of your business and what you need out of the loan. Whatever you decide to do, there are a few issues that should be kept in mind:

  • Ask your accountant for their thoughts but always back yourself up with a second opinion. It’s a good idea to do some additional research before you make a decision.
  • There are many companies offering restructuring services online. Your best chance of success will be with an experienced and recommended firm.
  • Watch out for upfront costs and always agree on a set price for the company’s services before you start.

Need to manage cash flow?

If outstanding invoices can help turn your business around, then you may want to consider invoice financing. It's a type of business loan that comes with reduced risk, no asset requirements or interest payments.

Compare the invoice financing products below.

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
Timelio Invoice Finance
Up to 4 months
Get up to 100% of the value of your invoices without having to wait for customer payments, and with no minimum turnover or operating history required.
ScotPac Invoice Finance
From 1 year
No set amount
Improve your business cash flow by financing your outstanding invoices. No minimum trading history required, but minimum 12 - month term and $10,000 in invoices.
ScotPac Selective Invoice Finance
1 to 3 months
Finance your unpaid invoices on demand with terms of 1 - 3 months. 95% of invoice is paid upfront, with no minimum trading history required.
Octet Invoice Finance
1 month to 2 years
No Set Amount
Convert up to 85% of your company's receivables into cash flow. The value of your receivables need to be worth at least $250,000 to be eligible.

Compare up to 4 providers

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