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Los Angeles California Bankruptcy Blog

Four factors alternative lenders consider

A small business loan can be the difference between keeping the doors open and having to shut down. If you are unable to secure a loan from a bank, a number of alternative lenders have emerged in recent years. These lenders help many businesses when banks will not.

Ricky Nila, CEO and founder of Lending Attic, a San Antonio-based commercial lender, says alternative lenders like himself look at four factors when assessing a loan applicant.

Think twice before signing on for a merchant cash advance

Your small business is going through a difficult time. You may have creditors pressuring you for payments, or you are struggling with inventory problems, or you may owe back taxes. Perhaps you are feeling the pain of all three.

Just as with personal finances, when a business owner is in a tight spot and needs an inflection of cash to stay afloat, it’s common to panic and make poor decisions. What seems like a life preserver can actually complicate finances further and accelerate a company’s death.

Bankruptcy may be the right choice, but what bankruptcy?

No business owner wants to admit that bankruptcy is the best way to resolve unmanageable debt, but for many, that decision ultimately must be made. That creates another decision: what bankruptcy is best for your small business?

The options available to small business owners depends upon on the structure of their company, how much debt they have, and whether they believe the business still has a future. There are business bankruptcy, but not all business owners will be able to choose from all three.

How to reduce your small business debt and avoid liquidation

Running your own small business is challenging even when business is good. When your company starts to lose money, running a small business can seem next to impossible. Depending on your business entity, you may also have personal assets tied to the livelihood of your business. Even if your personal property is not liable for business debts, you still have a lot invested in your company.

You know if you could just pay off some debt, you would have a successful business again. Here are some ideas that may help you and your business reduce debt and start on the road to success again.

Chapter 7 bankruptcy: Will I keep my business?

As a small business owner who has insurmountable debt, you are considering the drastic step of filing bankruptcy. You have done some research online, and Chapter 7 seems the best fit for your particular circumstances. Of course, you have many questions. The biggest is this: Will you be able to keep your business after you declare Chapter 7 bankruptcy?


Be sure to take lessons away from a bankruptcy

Think of Chapter 13 bankruptcy as a business mulligan. Some tremendously successful figures in U.S. history have declared bankruptcy, including our current president and the president widely considered to be among the best ever. Abraham Lincoln had to repay creditors over a period of 17 years after a general store he co-owned failed.

Other notable figures that rebounded following a bankruptcy include Henry Ford, Walt Disney and H.J. Heinz.

Is it getting easier to get business loans?

It appears that a fair number of banks are making it easier for companies to get loans these days. This is what a recent survey by the Federal Reserve suggests.

The survey polled senior loan officers from 72 U.S. banks. The results indicate that over 10 percent of banks loosened their business loan terms and standards for small businesses in the second quarter. Such easing was even more common when it comes to large businesses, with around 17 percent of banks reporting such easing for these companies.

California leads country in wage theft lawsuits

As an employer, it is your duty to make sure that each of your employees receive fair pay and treatment while ensuring that your company continues to make profits. Unfortunately, many companies in California fail to adhere to these standards and attempt to boost their earnings by forcing their workers to work off the clock without overtime pay.

This is further proven by a recent report published by the Corporate Research Project of Good Jobs First and the Jobs with Justice Education Fund titled, “Grand Theft Paycheck: The Large Corporations Shortchanging Their Workers’ Wages.” This study showcases the dangers of refusing to follow California’s wage and hour laws.

Out Of Court Reorganziation

I just finished helping a Southern California business wind down its affairs and resolve matters with its creditors without a bankruptcy filing.  The creditors did far better than they would have in a bankruptcy.  We created a soft landing for the business, its owners and its creditors.  Did so using a technique I created and have used multiple times with great success.  If your business is having financial challenges, hiring an  experienced and creative debt restructing lawyer can make all the difference in the world and save you many sleepless nights.

Cash flow management is key to small-business success

The long-term health of any business revolves around cash flow – what money comes in and what goes out. Ideally, more comes in than goes out over the long haul, but there inevitably will be periods where that is not the case.

Alexandra Levit, a business consultant and author, spoke with entrepreneurs Brandon Harris and Christine Yaged, who provided these cash flow management tips.

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