The usual "goalposts" are:
1. When Employee Entitlements have been paid on time, but cash flow is deteriorating.
2. If there is a suspicion that any creditor will not be able to be paid when due in the future.
3. When critical suppliers, taxes and/or employees cannot be paid
In the current environment suppliers will be less inclined to give credit to their customers. Moves to C.O.D. terms would put further pressure on cash flow.
Whilst the government has provided some temporary relief, the announced new measures will not replace the steps urgently needed to solve the overall problems a Business is facing.
It is our experience that the sooner steps are taken to address the problems the better the outcomes.
Give us a call on (03) 9896 9000