Board Certified Specialist in Bankruptcy
If you're one of the (few) business owners who has managed to keep your financial head above water in this economy, here are some tips for making more headway with your credit worthiness. These tips, in particular, will help you navigate a downturn more easily:BNET says: Separate business and personal accounts. Log and submit all business payment activity under accounts that are exclusively … [Read more...]
Two economists believe the past can indicate the future. At least as it concerns an economic recovery. Economists Vincent and CarmenReinhart just published a study of what happens to economies after big crashes like we suffered in 2008. The Reader's Digest version goes like this: Unemployment rates are "significantly higher" in the decade after crises, compared to the decade before. In 10 … [Read more...]
A recent column in Business Week about small business lending examined the role of the personal guarantee. "Given that most business loans are unsecured, a lender has little recourse, when a loan goes sour, beyond the personal guarantee of principals. And if the principals backing a loan are broke, a personal guarantee is virtually useless."The article went on to tell prospective borrowers … [Read more...]
After forty years of helping small business owners with their financial difficulties, I wish more of them understood how the personal guarantee can send them into bankruptcy. It's difficult for self-employed people and small business owners to get capital, and the lack of capital is a big part of the reason business owners file for bankruptcy when their businesses stumble or fall -- a vicious … [Read more...]