Ask the Debt Management Expert – Ken Rowan
Is It Your Business Failing?
How Is Your Company Financed?
As an owner-manager, you most likely finance your small company using shareholder loans.
This means your credit cards, your cash injections, your personal line of credit, and lower pay than you may deserve. After all, what bank is going to lend monies to your company unless it has stable, valuable assets?
Assess How You Are Doing
Do a checkup if you are the owner-manager of an incorporated company. Answer the following questions in each of two separate columns – one column for you personally and the other column for your company:
- What valuable assets exist?
- What are the liabilities?
- What is the monthly income or revenue?
- What are the monthly expenses?
When you complete this chart keep the following in mind:
- If the company owes you money, this is an asset to you and a corporate liability;
- your remuneration is your income and your company’s expense;
- Include as personal liabilities those company debts you personally guaranteed, perhaps including utilities, the landlord, and key suppliers; and
- As a director of your company you are personally liable for the company’s debts for GST and for payroll deductions.
Ascertain Who Has The Debt
We meet owner-managers who discover their company is just fine. But they have built up significant personal debts to get their company going and maintain it.
Debt Management Through Proposals
As an owner-manager, be relieved to know you can make a consumer proposal to deal with your personal debts while your company keeps operating. These proposals are only available through licensed administrators, including us.
Contact us for a free check up.