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Business Owners Can Turn to a Consumer Proposal for Debt Help

13 December 2018 No Comment

If you don’t know what a consumer proposal is or how it can help you get out of seemingly unmanageable debt, then you might have just been missing out on the solution to your financial woes. If you’re a business owner who can’t make debt payments and your creditors are seeking you out constantly (or even garnishing your wages), then you need to partner with a Licensed Insolvency Trustees from David Sklar and Associates to find the most practical solution for yourself and your creditors.

When the Debt is Too Much

As a business owner, you understand the importance of being bold in what you do. Owning and running a business is no easy feat —it takes a lot of commitment and smart decision making. If you’ve done some borrowing and taken out some loans to run your business, then that’s completely normal. There is a point where the debt will start to feel like too much, and there are some warning signs that you shouldn’t ignore.

If you are experiencing any of the following debt warning signs, then it’s time to evaluate your situation and enlist the help of a Licensed Insolvency Trustee to discuss your options.

  • You have no savings
  • You’re racking up more debt while trying to pay it off
  • You’re only making the minimum payments every month
  • You’re late in making payments
  • You don’t have a full picture of your debt situation (avoidance)
  • You’re using cash advances
  • Creditors are calling you and it’s getting persistent
  • You’re being denied further credit

Turning It Around

There’s a lot on the line with owning a business and because of that, you might be inclined to deny your debt situation. If you have lumped all of your money into one pot and cannot easily make the distinction between personal and business finances, then things could feel especially bleak.

If you are a partner or sole proprietor in business, then your trustee will consider the business assets, debt, and cash flow when providing advice in preparing your consumer proposal. The goal is to find the fairest deal for all creditors affected before filing for consumer proposal. If your business is incorporated, then your consumer proposal will not affect the business — you can still own shares and operate it as you would.

Keep the Business Running

Once you’ve found the best solution for managing your debt and you still have your business, there are some ways you can successfully operate without increasing your risk. To keep your business afloat when times are tough, you should cut unnecessary costs, prioritize your debt payments, and take care of cash flow.

Cash flow is especially important and you can get help with it by visiting a professional and being smart by having a backup plan. As a small business owner, you should have other sources of capital available in order to get you through the difficult times. After all, it’s completely possible to make it through to the other side.

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