Post a new topic
    4 Replies Latest reply on Jul 28, 2009 3:34 PM by DomainDiva

    I have a big problem

    wayz88 Newbie

      I have a big problem; I ordered a piece of equipment with a $20,000 SBA loan I got this year. The equipment was never shipped because the company was forced closed by the company that bought 80% controlling interest last August. I had a lawyer send a letter to the company that took over demanding my money back and he gave them 60 days. I found out that they're liquidating all of the other company's assets because now they're in a financial hole themselves and they're liquidating to save their buts. My lawyer said it would be a waste of money to sue them because of their financial problems. Also guess how I learned about the closing, not by letter or phone, by a online forum. This is the short version.


      Now I'm paying on a $20,000 loan with no equipment and maybe not even getting the money back. I plan on taking out another loan, but I already got a SBA loan and a consultant for the bank said it would be a year before I could re-apply for a SBA loan again. I can't wait that long. I'm just looking for some helpful options or suggestions.
        • Re: I have a big problem
          riskman1 Wayfarer
          lesson learned: you never pay for something until it is delivered!

          While this does not solve your problem. was it shipped?

          Not knowing how far the parent company is from you I have gone to collect directly before on different type of issues but you never know.

          Is the equipment being Auctioned?

          I would try the approach of trying to buy it? Again in the l;iquidation process......
          20k should have serial numbers etc and if you have documents of ownership.... go get it!
          Get all the info..... make the deal they will want cash or certified funds leave go get the sherrif collect your stuff
          if you paid and have your reciepts and can show ownership it is yours!
          • Re: I have a big problem
            TheConsultant Newbie
            As a small biz owner and consultant to small biz owners, one of the biggest challenges we face is knowing what our legal rights are and getting good advice that doesn't bust the bank, not only legal but in other areas as well. I don't have time to type a lengthy response, but if you want to give me a call, I'll point you to some consulting resources (not mine) that I think can give you some guideance byond what your attorny has given, and also help you decide how to further your business with or without a SBA loan. direct: 206-227-5325, toll free: 866-901-0336 - Ken
              • Re: I have a big problem
                creativeiads Wayfarer
                One thing you can try is talk to the owners directly if possible. Negotiate with them and see if they can pay you atleast partially threatening to sue them personally. As you attorney suggested, suing the company will increase your losses with no guarantee of recovery as they are liquidating. If the owners themselves are declaring personal bankruptcy, then things will become much difficult.

                Mike Varavooru,
              • Re: I have a big problem
                DomainDiva Ranger
                My guess is the owner knew at the time you placed the order that the equipment would not ship. A time line is important. The previous owner sold the company knowing it was going to be liquidated. Maybe there is some criminal fraud here, but you need to talk to your lawyer about this as well. I am surprised that the SBA did not get involved, the government these days is involved in everything. You may also want to contact the District Attorney in the district where this business was located.