Operating cycle
Venue-level sales and gross margin trends.
Hospitality tax debt
Tax-debt funding has to fit the hospitality cash-flow cycle.
High payroll, rent, supplier costs and seasonal trading can cause tax collections to be absorbed into day-to-day operations. A useful funding assessment separates the historic tax balance from the operating changes needed to prevent the liability rebuilding.
Assessment focus
What helps explain the position.
The exact information depends on the company, but these are useful starting points.
Cash conversion
Payroll, rent and supplier commitments.
Tax control
GST/PAYGW balance and a weekly tax-reserve process.
Historic debt and future obligations are different
Paying an existing ATO balance can improve immediate liquidity pressure, but the business still needs to reserve and pay future GST, PAYGW, super and income-tax obligations as they arise.
Look for the underlying cause
A one-off project delay, customer failure or expansion cost is different from a business that consistently cannot generate enough operating cash to meet tax and other creditors.
Prepare before applications open
Start with current management accounts, bank statements, tax statements, aged debtors and creditors, existing finance, and a short cash-flow forecast that shows future tax payments explicitly.
General information only. This page does not constitute legal, tax, financial or credit advice. SME Capital Partners is in pre-launch and is not currently offering or approving credit through this website.