Company debt is stressful. If you are struggling with company debt you will relate!
Since Liquidation is an option that should be taken as soon as a business cannot pay its debt, it is really not worth owning a business that is debt-ridden. If you are being chased and harassed by creditors but don’t have enough cash flow to trade out of it, consider liquidation.
Liquidation will enable you to get rid of debt but you can also continue to trade. There is not a better strategy to combat overwhelming debt problems. Liquidation will allow your business to recover because you will be able to start with a clean slate.
Liquidation is probably the best strategy to combat debt problems. Take your company back. Make your FREE call to discuss with us how we can Restructure your business to get rid of debt while it continues to trade. Click on the button below.
Are creditors harassing you?
It is painful to own a business that experiences cash flow problems where creditors call you every day and you have no answers. Sleepless nights, fear, and worry that you may lose your business and your assets put tremendous stress on your shoulders. All this while you are trying to overcome the pressure of running your business. You may also worry that you can lose your personal assets such as your house and furniture. Even worse, you may fear that SARS may take legal action or take what money you still have!
What are your other options to get rid of SARS and other debt?
If you are hesitant to liquidate the business, there are other options available, such as:
- Business Rescue (expensive, a stranger takes over your business. Unless the business will immediately increases its income at least 3-fold, the business rescue process is almost guaranteed to end in liquidation six months later).
- Pay the Debt (if the business cannot pay its debt, it is not a solution)
- Do Nothing and hide. (The debt increases because of interest and cost. The creditors WILL find you).
- Sell off all assets. (That means the business can either not produce. (if it is machinery and tools) or the proceeds may not be sufficient to pay the debt in full, which means tomorrow they are back. You possible need the assets to continue to trade in any case.
- Stop trading and find a job. Not really a good option in a country where the unemployment rate is very high.
- Make payment arrangements with your creditors and pay off the debt. That is, if you can afford to do so and the creditors will accept the amount you offer to pay. It also means that you will still be burdened by the debt, which will most probably grow. If the business experiences one bad month the payment arrangement will fall in arrears and you will be back to square one. (By now it has probably suffered many bad months and you just cannot ever keep up),
Liquidation remains the quickest route to the fastest solution
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At a time when it is critical to get rid of the problem while you continue to trade, none of the above are, in our experience, good legal solutions. Creditors will still call you, and interest and penalties keep on running especially SARS debt. Payment arrangements with SARS seldom work and worse, the balances will keep on growing. In the end, you might lose everything if you carry with the suffering business for too long.
If used correctly, liquidation can turn your business around by getting rid of the problems and that will enable you to continue to trade.