Maybe your business has so much debt that it cannot pay or your business owes SARS money. Perhaps your business tax returns have not been submitted, or your business VAT not paid. Your PAYE is outstanding. Suppliers are demanding money from you and the phone calls don’t stop. This keeps you awake at night and your business is freezing up because you are running out of cash flow.

If you have decided to get your business in better shape and improve its overall performance to make a profit, free up cash flow and get rid of SARS and other creditors, we have the right legal solution for you.

If your business is in trouble or you have too much personal debt

When your business is in trouble or you have too much personal debt you are certainly not alone. The majority of business owners do not have the legal knowledge to know what the solutions are when a business gets into trouble. Fortunately, we have the legal knowledge, as we specialise in exactly the problems that persons with failing businesses or with too much personal debt.

It is not always a good idea to try and trade out of the problems. In fact, that rarely works. My advice is to rather call it to a halt and find a solution before the problem persists for too long than to throw good money after bad to try and rescue the business. This is usually one of those situations where the old saying “try, try and try again” and “never give up” does not work or apply. There is nothing worse than trying to save a business that clearly has too much debt. It takes too long, is too expensive and the toll on the directors personally is too high. The stress and worry affect your health and well-being and ultimately affects your business.

Restructure your business and your debt and keep on trading!

It is best to start over as soon as is possible. Since we specialise in helping you to do that – to restructure your business and your debt so that you can walk away and keep on trading, we can assist you in taking your business to the next level.

We specialise in insolvency and can assist with liquidating your business and help you to shift into a new way of doing business. All within the constraints of the law. There are more laws available to you in your business and your personal debt than you think. Let us assist you in renewing your over-burdened business and free it from its problems so that you can do better business and grow wealth.

Five Keys to get your business out of debt!

1. Don’t ignore the problem of debt

When it comes to debt in a business or SARS issues, the one thing all my clients have in common is that they have ignored the reality for too long.

Accept that your business cannot pay its debt. Accept that the big contract that is going to solve all problems is not here yet. Learning when to stop is a good start. We will help you with this decision. Contact us now so that we can discuss whether liquidation is the answer or if there are other solutions.

2. Ask yourself these 7 questions immediately

Here are some of the top questions to ask yourself when you struggle to make a decision about whether you should liquidate or not.

Answer yourself truthfully, don’t mislead yourself:

  • Do you have big (and I mean BIG) contracts on the table that will give you triple of what the business owes in the next three months? (If you owe R500 000 – do you have a definite and paid for and confirmed contract on your table that will bring a definite R1.5mil to your business in the next three months?
  • Do you have to put more and more cash into your business to keep it going?
  • Can the business pay its creditors?
  • Does the business owe SARS money?
  • Do you lie awake at night and worry that your business may not make it?
  • Is the business out of cash flow, or running out of cash flow?
  • If the problem has persisted for the past 3 months, what exactly will change in the next 3 months to make the problem go away? Or are you just “hoping” things will change? But the question is is anything on the verge of happening that will really make the problem go away

3. If you answered yes to any or more of the above questions regarding debt, believe it or not, most business owners whose businesses are under financial pressure are not always honest with themselves about the above questions. They would like things to be different and they “hope” (there is that word again) that things will change, but usually by the time a business is in trouble it doesn’t.

You have come a long way if you are honest about the status of your business.

Next is the second hurdle when your business is in debt: the most difficult part about a liquidation is not the liquidation but the decision. The mind of the owner is the one big element that can shoot you in the foot or propel you forward. The sooner you accept the situation, the sooner we can liquidate the entity so that you can move on. I always find it sad if a client only arrives at my offices after he/she has spent hundreds of thousands of Rands to try and save the business. Had we liquidated the business the moment the problems started, the money could have been saved and the business continued without the problems. The cash flow could have stayed in the business and used to create wealth.

Now its time to make the decision on how to get your business out of debt. Contact us for a consultation so that we can analyze your business and help you determine whether a liquidation will be the solution or not. If you are at a total loss as to how to begin making a decision, or whether your business is insolvent or can be saved without a liquidation, let me know and I will gladly help you make the decision. I have the legal knowledge to help you make a determination. In my experience, in any case, it is always cheaper than to walk away from the business sooner rather than later. 4. If you need to liquidate but still need to trade I have the necessary legal experience and knowledge to help you with restructuring your business in such a manner that you can continue with trade and get rid of debt.

  • Keeping assets is possible.
  • Keeping staff is possible.
  • Keeping vehicles is possible.
  • Keeping suppliers is possible.
  • Bringing arrear SARS returns up to date is possible.

5. Act fast to find a debt-free path

The sooner you contact us to help you make the decision, the sooner we can get you on a new path to a debt-free business. Make a clinical decision, not an emotional one. We have the knowledge to give you the legal solutions. Don’t freeze up and implode – the effect on your health and your business is too high. We can act fast to get rid of the problem quickly. It is possible we can assist you without the effect on you being too harsh. We will carefully look at your situation and advise you accordingly.

We can also assist with sequestration of an individual (if you signed surety for too much debt) and if you have been sequestrated, we can also help you to rehabilitate.

Contact Nanika on 072 8558 106 or email her at nanika@nanikalaw.co.za to find out more.