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Los Angeles California Bankruptcy Blog

Don’t forget about business credit score

In today’s world, it is getting increasingly common for people to pay attention to their personal credit score and how to protect and improve it. It is important, however, for small business owners to remember that this is not the only credit score that can have major implications for their future.

It is critical for small business owners to not ignore the business credit scores of their companies. Companies are subject to a different credit score system than individuals. There are multiple types of business credit scores, with each having its own unique set of criteria and scoring range.

Responding to small business cost increases

From law changes to economic shifts, there are a range of things that can raise the operating costs for small businesses. So, expense increases are a common challenge for such companies.

Rising costs can have major financial impacts on businesses. In some cases, they could accelerate financial difficulties a small company is facing to the point that the business could be at risk of failing. Small business owners who are facing the potential of a business failure due to financial problems, such as debt struggles, may find it prudent to discuss their options for addressing the problems with a skilled bankruptcy attorney.

Could 2019 be a rough year for small businesses?

The economic conditions for small businesses can shift quite a bit over time. What will 2019 hold for such companies? Some predict that it could be a challenging year for U.S. small businesses.

Take, for instance, a recent article on Forbes’ website. The article, by an economics professor, argues that there are multiple factors that could put a lot of financial pressure on small businesses this year and that such pressure could put a fair amount of such companies at risk of failure.

Consequences of not paying employees before bankruptcy

If business is bad and you are considering Chapter 7 bankruptcy, experts advise you to keep your employees at the top of your payment schedule.

In a Chapter 7 bankruptcy, the trustee places those owed salaries, wages or commissions below only secured creditors to receive your liquidated assets. If there isn’t enough to cover the debt, employees will see only a portion of what they are owed.

Cost-cutting tips for businesses

With the new year about to start, many companies are reviewing their financial situation in order to help set their goals for the upcoming year. Some business owners may end up seeing some things they don’t like during such reviews.

What can business owners do when their company is struggling financially or they are trying to head off potential future financial difficulties? For one, they can take steps to cut costs

New Chapter 11 process for small businesses proposed

Chapter 11 bankruptcy can provide an important route forward for businesses that are struggling with debt. However, companies can encounter challenges when it comes to pursuing this route. Some argue that this may especially be the case for small businesses.

Arguments have been leveled that the current Chapter 11 system here in the U.S. isn’t well-designed for smaller companies. Worries over the costs and ownership implications of the Chapter 11 process may be leading some small business owners to stay away from this bankruptcy option.

How can a confession of judgment hurt my business?

Entrepreneurs have fallen victim to a growing scam that uses a legal document as a weapon to strip away funds from growing companies. The fraud also relies on the New York court system and an owner’s eagerness to expand into new markets.

Bloomberg Businessweek reported a recent situation with a Floridian couple, the Duncans, who worked with a New York lender for a small business loan. Although they continued to make payments on time, they eventually lost over $52,000 from their bank account.

New lending scheme targets, destroys small businesses

A predatory lending scheme that has blossomed in the past two years has been generating billions of dollars for the lending companies, millions for the agencies that enable the scheme and has driven thousands of small businesses across the country out of business.

The epicenter is New York, where an arcane method of collecting debts has been used and abused by cash advance companies to freeze and drain bank accounts of businesses from Alaska to Florida.

What is loan stacking and why can it be a problem?

Small business owners sometimes encounter challenges when it comes to getting financing for their company. For example, they might not get approved for as big of a loan from the bank as they were hoping for. When this happens, some business owners might be tempted to stack loans.

Loan stacking, generally, is when a business takes out loans from multiple lenders to try to get a certain amount of financing. It is important for business owners who are thinking about loan stacking to understand its risks.

The pluses and minuses of the holiday season for small businesses

The last part of the year, including the holiday season, can be a very impactful time for small businesses.

For one, this time of the year can be full of opportunities for a company. A recent survey of 300 small companies indicated that, for many different types of businesses, it is pretty common for the year’s final quarter to be the most profitable. Given the high level of shopping over the holiday season, it might not be too surprising to hear that retailers were among the businesses especially likely to report that the fourth quarter of the year saw the most profits.

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