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    3 Replies Latest reply on Aug 20, 2012 1:26 PM by Moderator Cath

    Debt - Do the Right Thing

    LUCKIEST Guide


      Every reasonable person, and responsible business owner wants to be a 'stand up guy'. 

      You went to a bank, you got a loan, you took the money and you spent it to improve your business.

       

      You didn't gamble it away, or spend it on frivolous activities.


      Now, through no fault of your own, your business is in danger of being forced into bankruptcy

      -due to an across the country economic decline totally beyond your control. 

      The results of a bankruptcy will be a shuttered dream.  

      There is a good chance that your home and other assets will be liquidated to satisfy the bank and the SBA. 

      Your employees will be joining the unemployment line, and your vendors will have one less customer,

      all because you wanted to 'do the right thing'.

      Now, if your business would be profitable with its choking debt load removed, and your employees would still be employed,

      and the vendors still have a customer, and your home and other assets you've worked for protected,

      then what is the 'ethical' basis of NOT pursuing a business debt workout before the matter is taken out of your hands?

        • Re: Debt - Do the Right Thing
          Unsinkable300 Wayfarer

          Boy,  I have a product that I can sell all I can build.  I have a building to build them in.  I don't advertise at all, yet people around the world contact me about my products, almost daily, includding different departments of the US Government.  My product is far better thatn anthything the US Millitary has in this area. 

           

          News articles have been written in every continent of the world about me and my products,   My story has been told on MSNBC, NBC, CBS, FOX, the BBC, Chinease News,  and hundreds more.

           

          I have sold samples that I shipped to the Persian Gulf,

           

          Yet, I can't find the money to build the product.... Now that is exactly the  opposite. Problem.  Making payments on a loan is not the problem, getting the operating capital  is the problem. 

          • Re: Debt - Do the Right Thing
            Moderator Cath Guide

            Luckiest, I read your post earlier and keep coming back to it.  I think you pose a scenerio that many small businesses have had to face.  Hard decisions to ponder, plus the loss of a dream and money is factored in also.

             

            Our emotions are so tied into the situation - we worry about employees that have committed themselves to the business, the vendors who have joined the team, and of course you - as owner.  Wouldn't it be easier if we could take our emotions out of the situation?

             

            There is no easy answer but a decision has to be made.  If you are fortunate to have a mentor or a very good business friend who you can count on to give an honest answer, then I would have a discussion with them.  Perhaps they may be able to point you to a resolution that will not involve stepping back from your business.  But should the ultimate choice be that you must declare bankruptcy, hold out the small candle of hope.  Get back on your feet and revisit your dream.  Could be you would choose to start all over again or could be you have moved on with your business life and will not look backward.

             

            Anyway, hard decisions to consider.  I'm glad you brought this topic up.  So often we do not want to think about bankruptcy and therefore, never do until we are forced to.

             

            Cath