People say that money doesn't make you happy, but from experience, I can tell you that not having enough money is not fun either. Sometimes getting a quick loan can be just the trick to get you back on your feet. This site is all about how to get loans and financing for small amounts of money and a short time when you just need a little more cash to tide you over and pay some bills. I like to be able to feel confident that all of my bills are paid and be able to put food in the fridge, without putting my family's finances in crisis.
With rising rates of business failure in Australia, there are many business owners who are shutting down their business who need to understand how to close down their business legally and resolve any outstanding owed money. If you are bankrupting your business you need to make some decisions about how you will discharge any debts and pay any creditors. Here are some important steps to follow when you are bankrupting a business.
Pursue outstanding debts
If you have payments that are owed to the business it is important to rigorously follow these up even if the business is no longer operational. It can be a good idea to use a commercial debt collection service as it can take a lot of persistence to retrieve these debts, particularly if the business is not longer operating. A commercial debt collection agency can continue to pursue the debts and has the time and focus to ensure that all of the debts are paid.
Review assets
As you will also need to pay any of your creditors as a business it is important to take a review of the assets of the business. This can include cash at bank, but also includes the assets that can be liquidated including plant and equipment, inventory and any vehicles. It is important that any of the assets that the business has owned are inventoried and sold if needed to pay debts. If you have struggled to get money paid from the debts that are owed to you, these accounts receivables can also be sold to certain financing firms and liquidated in order to speed up recieval of money. Your debt collection agency can often point you in the direction of a firm that can monetise your debts if required.
Formalise the paying of debts
Once you are clear on the assets that you have available and the debts you can then start to work through the owed money in order of priority. Generally you will need to pay secured creditors first, followed by unsecured debts and then equity holders followed last by customers who have paid for but not yet received some of your items. Your bankruptcy lawyers can help you to prioritise payments and ensure that everything is legally released so that there is no later recourse.
It can be very stressful to have to shut down a business but by getting the correct advice and assistance from debt collectors and bankruptcy lawyers you can make the process as easy as possible.
Share28 April 2017
