Two of the focuses of my blog are Financial Literacy/Money and Business/Entrepreneurship. While debt can be an important tool in business, it can also be a danger if misused. What do you do if you business goes into debt? The following contributed post is entitled, Your Business Is In Debt. Now What?
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If your business is in serious debt, it can cause an enormous amount of stress and misery. You may wonder what your options are and what you can do to turn the situation around. In this article, we’re going to take a look at some frequently asked questions so that you have the knowledge you need to proceed if the bailiffs come knocking.
What Are My Options If My Bank Calls In My Business Overdraft?
Many businesses rely on their business overdrafts to provide them with the capital that they need to survive. Unfortunately, some banks can demand that you pay back the entire overdraft immediately, not giving you any time to actually earn the money you need. If you don’t pay back the money you owe, then you can lose access to your account altogether. The best strategy in this situation is to go to another bank and open a new account, or open a separate account right now with an overdraft facility if you think your bank may shut your account.
Can I Get Debt Counselling?
Debt counseling business services help you reduce stress, manage your finances, and work out whether you can afford to repay the money you owe long term. Through the debt counseling process, some people discover that they can no longer sustain their businesses and have to shut them down. Others realize that they can better manage their money for a happier, more productive working life.
Can My Landlord Change The Locks On My Business Premises?
The rules for business premises are different from those for your private residence. A landlord can evict you immediately from commercial premises if you fail to pay the rent. They are also allowed to change the locks, but in most cases, they must apply to the court first to do this.
What Happens If I Cannot Pay An Employee?
In most cases, you have up to fourteen days to pay an employee any money that you owe them. If you can’t pay them because you don’t have the money to do so in your business account, then you must make alternative arrangements. Most business owners will try to come to some resolution with employees, paying them through installments if and when the money comes through.
Can Debt Collection Agencies Take Your Tools And Business Property To Repay A Debt?
Debt collection agencies are not the same as bailiffs. They do not have the right to force entry into your property and take your possessions. Usually, companies will hire debt collection agencies if you’ve missed a payment or two. After that, they may then pass the matter onto the courts and bailiffs who may decide that they can take possessions from you by force.
Can I Still Have A Bank Account If I Go Bankrupt?
In general, the answer is yes, but these accounts tend to be very basic. It’s unlikely that you’ll get an overdraft facility or the option to borrow money. You’ll also probably have to stick with a debit account.