Video transcript.
Hi and welcome to today's episode of Royce Stone Capital, where we talk everything regarding wealth and business. My name is Tarek Omar, I ‘am the CEO of Royce Stone Capital. On today's video we're talking specifically about the elephant in the room that exists for quite a number of business owners and that is tax debts.
Tax Debts
You see a tax debt is not just a tax debt it can actually be quite a serious issue firstly
the ATO can issue a statutory demand notices to a business and the fees and penalties that come along with a tax debt.
Tax debts and bank funding
The other thing that a tax debt can actually do is it can actually limit your ability to get funding especially from a bank. Now that's a critical point especially when you as a business owner need funding for your business.
So i'm going to give you three steps you can take as a business owner to overcome your tax debt straight after this intro video.
So i want to paint a picture for you, imagine you've got this thriving business that's doing really well before c19 and you're going from strength to strength and instead of paying your taxes you've been taking that money and reinvesting it back into
the business. Then out of nowhere c19 hits, you take a big hit to revenues and you've got a shortage of working capital, and at the exact same time you get this amazing business opportunity presenting itself to you.
But you can't take advantage of it, so you go to the bank and you say Mr bank
I’ve got a lot of assets and I’ve borrowed some money off you can i please borrow more? And the bank says well no you've fallen behind on some repayments and you've also got a large tax debt and now your business is hanging on by a thread.
This is the exact situation one of our clients found themselves in.
Tax debts and business private lending
Now luckily we were able to provide him a private lending solution to get him
out of it out of that situation , but private lending is not always the answer.
Now i'm going to provide you with three steps you can take as a business
Owner to help overcome your tax debt. Make sure, you speak to a advisor and your lawyer as to whether this is right for you .
Tax Debt Advisor
Number one is to engage a tax debt advisor . A tax debt advisor is different to an
accountant and they're different to lawyers. And what they'll do is they'll negotiate
with the ATO the fees and penalties you've been charged and they'll help make the debt more manageable for you, now that's really important when you've got a shortage of cash flow . So step one, is to talk to a tax debt advisor.
Cashflow
Number two, you need to look at your current situation and you need to work out
well why aren't things working out for you? Does something need to change in
your business model, do you need to make some hard decisions , in regards to the business? And how you can rehabilitate yourself?
When to borrow private funds
step number three, if you need working capital there's lots, of private lending solutions out there in the market. Find the one that's right for you.
But let me say this there is no point , borrowing money from john , to pay Paul if you can't rehabilitate your business situation. So don't put yourself further into trouble unnecessarily. The reason I’ve made this video is we've basically come out of a situation where we had money from government like job keeper, and the money stopped and i know right now there's a lot of businesses in this situation that are
Hurting.
So please talk to your accountant, please , speak to your lawyers, about how you're going to get yourself out of this situation and rehabilitate.
I hope this video has added a lot of value to you and if it has.
I really look forward to speaking to you
all the best
