Making a Big Difference in Your Business Life
March 28, 2025
Navigating Business Administration: Yes, It Can Be Messy—But You Don’t Have to Do It Alone
A “greedy” balance sheet is often the first sign of trouble when a business faces administration. Creditors are circling, each one looking for the best possible outcome (the highest cents in the dollar), and it can feel like you’re in a never-ending battle.
Meanwhile, you might be juggling side deals with suppliers who took personal guarantees, only to find that telecommunications providers (like Telstra or Optus) can’t distinguish between administration and liquidation—so they simply cut off services before you have the chance to explain.
At Your Business Angels, we’ve seen first-hand how stressful administration can be.
We help our clients navigate everything from tough negotiations with creditors to the possibility of losing essential services—like having your phone lines shut down. It’s an overwhelming time, and that’s where our 30-plus years of experience really comes into play: we’ve been in these battles before and have guided many businesses through to the other side.
When an administrator steps in, they’ll want to propose a Deed of Company Arrangement (DOCA), which means offering X cents on the dollar to settle with creditors. Priority issues like superannuation and any secured lenders (those with a fixed or floating charge) must be addressed before moving forward, or they might appoint a receiver. Couple that with a Director’s Penalty Notice—which has its own strict timeframes—and things get complicated fast.
But it doesn’t end there. At Your Business Angels, we understand that behind every “big picture” decision lie countless smaller pitfalls. Telstra or Optus might cancel phone services, leaving your clients unable to reach you. Fintech lenders may call in their loans at the worst possible time. And all the while, the business’s owners are trying to figure out if it’s even worth pushing on—or if the smart move is to close up and walk away.
We’re here to help you make those difficult calls.
We’ll look at what the balance sheet demands in terms of principal payments and other loans, and we’ll set realistic goals for your DOCA.
We also acknowledge that administration takes both courage and flexibility: you need a plan, but you also need to be nimble enough to handle the unexpected.
If you—or someone you know—are feeling the pressure of a looming administration, reach out to Your Business Angels at 1300 982 559. Let’s work together on a path forward that focuses on business survival, practical solutions, and yes, even the possibility that it might be time to throw in the towel if the numbers just don’t add up. Whatever the outcome, we’ll be by your side, helping you tackle the messy and often overwhelming challenges head-on.
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