Small Business Restructure + Invoice Finance. A practical recovery path for businesses in distress.
When a business is under pressure, options feel limited. But Small Business Restructuring (SBR) can offer a genuine path forward. Using the right funding partner through an SBR makes all the difference.
At Earlypay, we work with brokers and restructuring professionals to help keep businesses operational during and after an SBR by unlocking working capital tied up in unpaid invoices.
Small Business Restructuring (SBR) is a formal insolvency process where a Small Business Restructuring Practitioner (SBRP) is appointed to negotiate a deal with creditors to reduce total debts, including tax obligations.
What makes SBR unique is that directors stay in control of the business and operations continue during the restructure, making it a compelling option for business owners who want to trade through short-term financial stress.
With the ATO and other creditors now actively pursuing debt, SBR has become Australia’s most widely used restructuring solution, surpassing Voluntary Administration.
To qualify for SBR, businesses must meet specific eligibility criteria, including:
Earlypay can assist your clients in meeting these requirements to:
Catch up on employee entitlements
We unlock funding from unpaid invoices to help clear super, leave balances, and other critical payments that need to be brought up to date.
Reduce unsecured liabilities
We can provide funding to help pay down debts and bring total unsecured liabilities below the $1 million SBR threshold.
Access working capital early
Offering access to working capital to manage cash flow pressures during the crucial pre-appointment and restructuring periods
Keep control of the business
Enabling businesses to keep trading and retain control, even when facing creditor pressure
By partnering with Earlypay, brokers and restructuring practitioners gain a flexible funding solution that can smooth the path to a successful restructuring.
The scenario
A regional NSW manufacturer was facing severe cash flow pressure. The business was viable, with strong receivables, but overdue tax and supplier bills had become overwhelming. The director was hesitant about restructuring but out of options.
The SBR decision
Working with their accountant and a restructuring advisor, the business decided to enter a Small Business Restructure (SBR). But to qualify, they needed to reduce unsecured debts below $1 million and catch up on key employee entitlements.
Where Earlypay came in
The business had more than $600,000 in unpaid invoices owed by commercial clients. Earlypay provided Invoice Finance that unlocked those receivables — and helped the business meet SBR eligibility by:
The result
The business was able to continue trading, keep their team employed, and exit the restructure in a stronger position. In the Managing Director’s words:
We’re not here to lend and leave. We work with brokers, practitioners and their clients to support viable businesses through the transition and beyond.
Whether your client is considering an SBR, already in one, or just coming out the other side, Earlypay can provide flexible funding to support their recovery.
Partner with us or get in touch with your Earlypay BDM to talk through your client’s situation and explore how Invoice Finance could help.
