John had been operating through a company for over 40 years. He approached Marsh & Partners to assist him to get his business “ready for sale” in the next 5 years. We implemented a profit improvement plan to help him maximise the value of his business.

On review of the accounts though, there was a large Division 7A loan account that John would have to pay back to the company. This was not an attractive scenario for potential purchasers so we needed to work out strategies to reduce this loan. We also reviewed how much money John needed to be paid as wages so he could stop withdrawing the money from the company and creating more loans.

A lot of our new clients have approached us after getting a “Division 7A surprise” because they weren’t aware of the consequences of taking money out of their company. Do you have a loan problem in your business? Contact us to find out how we can help.