What is an SBR (Small Business Restructure) & How can it help your business?
A Lifeline for Struggling Businesses
Running a small business isn’t always smooth sailing. One month, things are going great, and the next, you’re juggling overdue invoices, tax debts, and calls from creditors. If your business is under financial stress but still has potential, a Small Business Restructure (SBR) could be the solution you didn’t know existed.
This government-introduced process allows businesses to legally renegotiate their debts while continuing to trade—giving them the breathing room they need to recover.
If you’re feeling the pressure and wondering whether your business can bounce back, this guide will walk you through what an SBR is, how it works, and whether it’s the right move for you.
What is a Small Business Restructure?
A Small Business Restructure (SBR) is a formal process that helps financially distressed businesses reduce their debts, regain control, and avoid liquidation.
It’s designed to give viable businesses a fighting chance to recover—without shutting down or handing control over to an administrator. Instead of letting creditors dictate your future, an SBR lets you work with a Restructuring Practitioner to create a manageable repayment plan. If creditors approve, your business gets a second chance without being dragged through court proceedings.
A successful restructure means:
Your business continues to trade
You reduce your debts to a manageable level
You avoid the stress of liquidation or voluntary administration
You stay in control of your company
For many small businesses, it’s the difference between a temporary setback and closing the doors for good.
How Does the SBR Process Work?
The SBR process is straightforward and designed to be efficient. Here’s how it works:
Step 1: Appoint a Restructuring Practitioner
A Restructuring Practitioner (RP) is a registered professional who assesses your financial situation and helps you develop a plan. Unlike voluntary administration, you stay in control of your business throughout the process.
Step 2: Develop a Restructuring Plan
With the help of your RP, you create a formal plan that outlines how you will repay your debts in a way that works for both you and your creditors. This plan typically includes:
A reduced repayment amount
A realistic timeline for clearing debts
Evidence that the business can continue to trade successfully
Step 3: Creditor Vote
Your restructuring plan is sent to creditors, who vote on whether to approve it. If more than 50% of creditors (by value) agree, the plan moves forward.
Step 4: Execute the Plan
Once approved, your business continues trading under the new repayment structure. You stick to the plan, pay off debts as agreed, and focus on rebuilding.
Who Can Apply for an SBR?
Not every business qualifies for an SBR. To be eligible, you must:
Owe less than $1 million in total debts
Be unable to pay debts as they fall due
Be up to date with tax lodgements and employee entitlements
Not have used an SBR in the past seven years
If you tick all these boxes, an SBR could be a realistic way to restructure your business without shutting it down.
Is an SBR Right for Your Business?
A Small Business Restructure works best for businesses that:
Are struggling with debt but still profitable at their core
Need temporary relief to get back on track
Want to stay in control rather than enter administration
It’s not a magic fix, but for the right business, it can mean the difference between a successful comeback and an unnecessary closure.
If your business is beyond recovery—meaning it no longer has a viable future—then liquidation or voluntary administration may be more appropriate. The key is getting expert advice early so you have the most options available.
What’s the Next Step?
If your business is facing financial difficulties, now is the time to act. Waiting too long can limit your options, and an SBR works best when it’s implemented before things get out of hand.
The first step is getting expert advice to assess your situation.
We help business owners like you:
Understand your options
Navigate the restructuring process
Create a plan that works for both you and your creditors
If you’re unsure about your next move, book a confidential consultation today. No pressure, just clarity on your options.
A Small Business Restructure isn’t just about reducing debt—it’s about giving your business a fighting chance. If you’re struggling with financial pressure but believe your business has a future, an SBR could be the smart, strategic way to reset and recover.
The key? Don’t wait until it’s too late. The earlier you act, the more options you have.
If you’re feeling overwhelmed, reach out today—we’re here to help.