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Early numbers regarding the collapse of Tagara Builders

in Our articles  by Prathamesh 0 comments

What has happened so far

Tagara Builders Pty Ltd was up until late June this year a large construction company based in Glynde, South Australia employing nearly 50 people and $70 million of projects under construction. But the company has now fallen into liquidation and early reports have started to indicate the scale of damage which has resulted from this event.

Here are some of key points from these early reports

  1. There are more than 700 businesses listed as creditors.
  2. Early creditor reactions seem to suggest that they’ll be lucky to even get 10 cents on the dollar.
  3. Some of largest creditors are owed money to the tune of $875,000.00, $727,348.44 and $644,973.74.
  4. Considering the the fact that the company chose to go into liquidation rather than administration, the likeliness of creditors receiving any money at all is very remote.
  5. The company directors are deeply saddened by this event and will try and get the most they can for their creditors.

 

The bigger they are, the harder they fall

And while you’re reading this article it’s important to remember that even though these are just numbers, real people and their families are affected. And as the saying goes, “The bigger they are, the harder they fall”. And in this case, the fall will be hard. Hard working and honest men and women along with their families for no fault of their own will be made to bear the brunt of this collapse. All we can hope for now is that the liquidation in some miraculous way, turns in their favour.

Hard working and honest men and women along with their families for no fault of their own will be made to bear the brunt of this collapse.

But then there are ways this can be avoided. Luck can never be guaranteed to always be on your side. What’s needed is a way to make your own luck. A guaranteed way to ensure that if a business engages in work with another business, the funds owed are secured so that once work is finished, they are released and paid immediately. This is exactly what we at CheckVault have developed. We want to avoid future Tagara incidents which put businesses and their families in tough financial situations. Our aim is to make the industry safer when it comes to payments.

Our product is currently being used by over 400 businesses mostly in New South Wales, and not just in the construction industry but across other professional services like accounting. Their stories are available on our website.

 

 

Start your registration today

 

But coming back to what’s happening in South Australia with Tagara Builders, we sincerely hope that the liquidation comes through with good results for the businesses affected.

Numbers don’t lie – if you’re an unsecured creditor, the numbers aren’t pretty

in Business / News / Our articles  by Prathamesh 0 comments

ASIC recently released their corporate insolvencies report for the 1st July 2013- 30th June 2014 financial year. This report collects and summarises information on the lodgements made by liquidators, receivers and voluntary administrators (external administrators) in the financial year for businesses that went insolvent. It gives us an insight into the

  • number of businesses that failed
  • the size of these businesses
  • the reasons for them failing
  • how much unsecured credit was never paid etc.

If you wish to view this report in full, you can find it here. In this article, I will be looking closely at certain pages in this document and bringing them into discussion.

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You don’t start a business to chase money

in Business / Our articles  by Prathamesh 0 comments

Why does one start a business? To make money of course.

But it’s also because you know you’re good at something and you want to offer these services to your community, country or even globally. And in return you receive a remuneration, most commonly in the form of money. But if you’re finding yourself worrying more about the money side of things, like chasing payments, doing court rounds because of a dispute etc., then there is something wrong in your invoicing methods/payments receivables department of the business which is preventing you from doing that very business. 

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Just pay me when you’ve got it. I don’t mind waiting

in Business / Our articles  by Prathamesh 0 comments

“Yeah no worries, just pay me when you’ve got it. I don’t mind waiting” is listed among an extensive line up of things you’ll never hear from a tradie in a hilarious satirical clip “S#!t Tradies NEVER Say” produced by Tradies National Health Month.

Many tradies, like other small-medium sized business operators, are greatly affected by cash-flow issues caused by not getting paid on time, or in some cases not getting paid at all. This can put enormous pressure on their mental health, self-esteem and spill over into their family life. While this is particularly rampant

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Security in ‘the cloud’: How to make sure your information remains secure while using cloud-based software

in Business / Our articles / Technology  by Prathamesh 0 comments

Cloud computing gives you greater freedom than ever before. No longer tethered to a desk, you can manage your business, and with CheckVault your payments as well, on the go from anywhere.

So with the growth in cloud-based software services available we thought we would share with you a few tips on how to keep your information secure when using these tools for your business or at home.

  • Use an internet browser with good security protection – Google Chrome is acknowledged as the most highly secure of the most popular browsers. We have optimised our site for Google Chrome to give you the best and most secure CheckVault experience.
  • Check that the website is secured – Look at the top left hand side of the
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7 Common Goal Setting Mistakes to Avoid

in Business / Our articles  by Prathamesh 0 comments

Last week we looked at setting goals. Hopefully you have created an opportunity during the week to look at your business achievements and set goals for the financial year ahead.

Let’s now look at what not to do when setting your goals, as we look at a few common goal setting mistakes to avoid.

  1. Not making them SMART. If you don’t make your goals Specific, Measurable, Achievable, Relevant and Time Based, you are creating a
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7 Steps To Setting Great Business Goals

in Business / Our articles  by Prathamesh 0 comments

There’s an old saying by Benjamin Franklin: “If you fail to plan, you are planning to fail.”

So with the start of the new financial year, it’s a perfect time to set your business up for success as you plan your business goals.

To help you on your way, here’s seven easy steps that will have your first goal set before your first meeting tomorrow, or even by the end of today. Set aside 30 minutes without your phone, without disruption and just focus.

  1. Reflect – as we spoke about in our last blog post, it’s important to
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Business Health Check – End of Financial Year is the perfect time

in Business / Our articles  by Prathamesh 0 comments

There are only three days to go until we wrap up the 2013/2014 financial year in Australia.  It’s a great time to take a few minutes and reflect on the year that was, then use this insight to start planning your year ahead.

Take stock of where you are; what worked well; what didn’t; what you’ve achieve and where you can improve.

Think about:

  • How many jobs have you quoted?
  • How many jobs have you
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Pool Registration Extension – what it means for you

in Business / News / Our articles  by Prathamesh 0 comments

If you own a pool or spa and are looking to rent or sell the property on which it is located, you’ve been given some extra breathing space.

Last month the New South Wales Government extended the deadline for pool owners to register their pools until 29 April 2015. A Compliance Certificate will be issued following the registration which applies to all rental and sale properties which will remain valid for three years.

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Tips to Accurate Cash Flow Forecasting

in Business / Our articles  by Prathamesh 0 comments

Cashflow

“Cash flow forecasting is an essential skill to learn. It helps you identify and prepare for hidden opportunities and risks, and make key strategic decisions with confidence.

“A cash flow forecast looks ahead at the flow of cash that could come in and out of your business, and the surplus working capital left over you can re-invest.  It’s the core tool for

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Walton and the Phoenix

in Business / News / Our articles  by Prathamesh 0 comments

Walton Construction collapsed over six months ago. Many of the unsecured creditors are still left wondering if they’ll get anything back. Unfortunately for them, statistics show that an unsecured creditor in the construction industry gets less than 1c in the dollar.  We feel for them. Cases like this are the  very reason we at CheckVault are so passionate about making sure businesses can get their payments secured.

Interestingly, according to one source Walton Construction had a record as

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Just one bad job from going out of business

in Business / Our articles  by Prathamesh 0 comments

I was reading an article on the Masonry Contractors Association of NSW & ACT website recently in which they published an article titled “USA low margin lesson“. The writer tells a great story of how, when chatting with friends who ran their own businesses across varied professions, they were all ultimately in the same situation.  From doctors to lawyers, accountants to contractors, they “are all just one bad job away from going out of business.”

A scary thought. And one CheckVault is changing.

Until recently the only option a contractor, builder, accountant or even lawyer, really had was

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Amendments to Security Of Payments Act now in place

in News / On the road / Our articles  by Prathamesh 0 comments

Earlier this week, on 21st April 2014, changes came into effect for the Building and Construction Industry Security of Payment Amendment (SOPA) Act 2013 (“Amendment Act”).  The amendments will apply to all contracts entered into on or after this date.  The amendments include some of the recommendations made in the Collins Inquiry which looked at depth at insolvency in the NSW construction industry. 

The Master Builders Association of NSW notified it’s members of the key amendments as follows:

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Survival rate in construction industry lower than average

in News / Our articles  by Prathamesh 0 comments

Image

We know the construction sector can be a tough space to work – in both the physical and economic sense.  There’s a lot of risk to any construction business.  So do you love it so much you’ll work for free? That’s the predicament many a contractor and builder face when their client can’t pay the bills.

Recent figures from the Australian Bureau of Statistics (ABS) show that

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Cloud-based software to take off in 2014

in Our articles / Technology  by Prathamesh 0 comments

A key trend deserving pride in your business in 2014 is the use of cloud computing.

Commonly referred to as ‘the cloud,’ cloud computing allows you to access information over the internet rather than having to work from a static desk-based location.  By embracing the power the cloud you can simplify your work processes to help you free up time for more important and interesting things.

The construction sector is one of the latest industries to see 

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