Insolvency is the inability of an individual or incorporated entity to pay its debts as and when they fall due . Don't go broke Every year, thousands of Australian businesses go broke. The directors of most of these businesses believed it couldn't happen to them.
Many businesses have unexpected crises.
Directors tend to keep working hard to manage through the crisis. But this takes up the very time that is necessary to help the business continue. The key to surviving a crisis is to understand the early warning signs. This allows you to take action in time to recover. You may never have serious problems, but a client or supplier might.