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Avoid Small Business Bankruptcy with Debt-Help® for the Self-Employed

Assistance from Licensed Insolvency Trustees in Edmonton

Many self-employed small business owners will go into business to feed their passion. For many, making money is only a by-product of doing what they love. Whether it is building structures, baking cupcakes, or selling real estate, getting out of bed each morning is easy, especially when they do not have to punch a time clock for a boss.
Starting a business can be relatively simple. Staying in business is the hard part. To be around for the next 20 or 30 years, small businesses owners need more than a passion for what they do. They need to get comfortable with profits and losses, debts, taxes, budgets, and taking control of their financial future. Many people decide to start their business without proper planning or clarity.
Even those with good financial planning skills can quickly find themselves in trouble if the economy plummets in their sector or they do not have business cushion/savings funds or access to the funds they need.

Common Money Problems Small Businesses in Edmonton Face

As a small business owner, the struggle to keep your company afloat can be very taxing. It can be compounded when you are not prepared from the beginning, and being a small enterprise may mean a lack of access to funding/investors like larger corporations. Some of the most common money problems that small businesses face include:

  • Lack of funding – While you may need to “spend money to make money,” if a company does not have enough capital in the beginning, they are forced to find other means, often resulting in debt. This debt can take a variety of forms, such as credit cards, a line of credit, or even second mortgages.
  • Repaying debt – When a company is struggling to pay day-to-day expenses, adding extra debt payments compounds the burden. Struggling to repay debt can quickly spiral out of control and financial options and actions need to be taken.
  • Unplanned expenses – It is hard to know when equipment will fail or you will be sued, but it does happen. A small business can quickly be crippled if their budget does not allow for the unexpected.
  • Fluctuating cash flow – Running a business means that income will change. Some weeks receiving a paycheck may be impossible after paying all the bills, vendors, and employees. This situation is when many find themselves dipping into lines of credit to get through. This warning sign means get professional insolvency advice, fast.
  • Paying taxes – Some self-employed individuals put off paying their business taxes which can quickly blow up into a massive CRA tax bill and possibly liens later.
  • Day-to-day money management – Without the help of a bookkeeper, small businesses owners must tallying up their daily receipts, pay invoices, and other business expenses while also doing the work of their business. Often, the business owner puts off doing the books because of the hassle. This can lead to late payments and inaccurate calculations.

Discover Your Options with Help from a Licensed Insolvency Trustee in Edmonton from A.C Waring & Associates

Watching your hard work crumple up can be devastating. For business owners feeling the pressure of failing income to meet payment demands, talking to a Trustee about their business issues soon enough may alter the inevitable.  Trustees can discuss financial management, debt overload, projections, restructuring and other options.  There may also be the options of discussing a consumer proposal, a commercial proposal (Divison 1) or bankruptcy.

Small Business Bankruptcy Issues – What You Should Know

When all possible money woes compound over the years, it may seem easier to throw in the towel and admit defeat. Sometimes bankruptcy looks appealing. It is critical to understand that in Canada when you file bankruptcy as a self-employed person, it is treated similarly as personal bankruptcy.
While you may still be able to operate your business, if you are a director of your company, you will have to resign. A small business bankruptcy will mean that your personal assets are included as well as business assets. In other words, you may lose some of your assets from both sides of your life – business and personal.
Since a small business bankruptcy is treated similarly to a personal one, you are subject to surplus income calculations. Your income will be determined based on your net income after legitimate business costs are deducted first.
Operating your company may become harder as your access to additional credit may very well dry up. If you are pushed to the brink of insolvency, then your existing lines may be cut off and obtaining new ones could become nearly impossible.
At A.C. Waring & Associates Inc., one of our caring and highly-trained credit counsellors may sit down with you and evaluate your financial position and debt situation. They will discuss your income and debts and work with you to develop a plan to pay back your creditors and avoid bankruptcy. This helps you stay in business while retaining your business assets. It may be possible that your lines of credit may be unaffected as well.

Contact A.C. Waring & Associates – Get Help with Debt Relief

Keep your dream alive and get your life back on track with timely help from the professionals at A.C. Waring & Associates, Inc. We understand your situation and can help your financial situation.  Reach out to us today.  Our consultation is FREE.
Contact us toll-free at 1-800-463-3328 or 780-424-9944 today to get timely guidance and new hope for your financial problems.
Call us. We can help.

Written by Arthur Waring

Arthur earned his Bachelor of Arts from the University of Western Ontario before earning a Bachelor of Commerce from the University of Windsor. During university, he also participated in a French immersion program in Trois Pistol, Quebec, and has been employed for several national firms over the years.

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