Small businesses in strife are increasingly turning to the simplified debt restructuring process introduced during the pandemic with large spikes in take-up over the past two months, according to the latest data from creditor risk specialist Alares.
It found Small Business Restructuring applications during August and September averaged about 75 a month the first sign the scheme had traction since it was introduced in early 2021.
Alares director Patrick Schweizer said the business community was now more familiar with SBR.
Theres generally a much better understanding of the process and the benefits among key stakeholders small businesses, creditors, and restructuring practitioners, he said.
The ATO stepped up debt collection activity…
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