Business Bankruptcy

You finally came up with that million-dollar business idea! No more nine-to-five shifts, working for a boss you don’t see eye to eye with. Your idea fits your lifestyle and passions, and you can’t wait to get it up and running. Your business plan is complete, and you’ve located the perfect storefront that’s up for lease. Although you don’t have enough cash reserves to finance this endeavor, that’s okay. The next step on your to-do list is to secure a business loan to get you going.

While this is an exciting step that will make your business dreams a reality, it is important to keep your guard up. Don’t let your emotions get the best of you because people will try to take advantage of your situation. Business loan scams are happening more frequently, so knowing what to look for is essential. Here is a list of business loan scams to avoid.

As a business owner, there are very few things more unsettling to consider than shutting down your business or filing bankruptcy. The US Bureau of Labor Statistics (BLS) finds that 20% of new businesses fail during the first two years, 45% during the first five, and 65% during the first 10. Only 25% of new businesses make it to 15 years or older.

These are sobering statistics, to be certain. However, filing for bankruptcy does not necessarily have to spell the end of your business. Similarly, many businesses that do close never pursue bankruptcy. Typically, most businesses that file bankruptcy do so due to overwhelming debt. There is a bright side to all this: some businesses are able to save themselves by renegotiating untenable debt situations and essentially ‘starting fresh.’