Other insolvency indicators to look out for:

• Continuing losses

• Liquidity ratios below 1

• Overdue commonwealth and state taxes

• Poor relationship with Bank, including inability to borrow further funds

• No access to alternative finance

• Inability to raise further equity capital

• Suppliers placing company on COD, or otherwise demanding special payments before resuming supply

• Creditors paid outside trading terms

• Issuing post-dated cheques

• Dishonoured cheques

• Special arrangements with selected creditors

• Solicitors letters, summonses, judgements, or warrants issued against the company

• Payments to creditors of rounded sums which are not reconcilable to specific invoices

• Inability to produce timely and accurate financial information to display the company’s trading performance and financial position and make reliable forecasts.

• Non payment of statutory superannuation contributions.