Reopening state and international borders is key for the healthy return of business, according to those who know best – the actual business owners who are suffering as the pandemic drags on beyond the 18-month mark.
This is according to the 2021 KordaMentha – TMA Australia Turnaround Survey.
46 per cent of respondents believe border closures “will be a significant factor putting pressure on businesses”, while 32 per cent feel supply chain delays will be the biggest pressure to a good turnaround.
“Concern around the impact of COVID-19 on Australian businesses has not abated, it has evolved,” said Maria O’Brien, President of the TMA Australia.
“Reopening state and international borders is crucial to protecting businesses of all sizes.”
Interestingly, “traditional pressures” such as availability of cash and rising cost bases are of secondary concern.
“Access to cash is not presenting a challenge to Australian businesses right now. This is likely to be due to the success of government stimulus and availability of funding options which have been better over the last 12 months,” said Chris Martin, Partner at KordaMentha.
“Most turnaround professionals credited government stimulus and financier support with holding back the wave of external administrations this year, with other factors identified being rent and other moratoria, ATO relief, low interest rates, a lack of creditor action, cyclical and structural changes to the restructuring market.
“However, they are anticipating a rise in demand for turnaround and insolvency services and advisory once vaccination targets are reached across the country,” O’Brien concluded.
