Incorporated Company In Trouble – What next?
My husband and I have an incorporated company employing 4 other people. We took a risk by hiring an employee we thought would bring in additional revenue and bring the business to the next level. We knew there would be a ramp-up period for him, but it has been one year now, and we continue to accumulate debt to pay the overhead associated with his employment. The bank has increased our line of credit to $50,000 from $25,000 originally, and we are currently sitting at $41,000. Our payables outweigh our receivables and there is nothing in the pipeline. Our weekly overhead is approximately $5,000. That doesn’t give us much time before we run out of money. What would you recommend as a next step? We personally own the building that the office operates from, so we could lay everyone off and lease the office space to pay down the debt while keeping the books open to bring in the remaining receivables and finish up the jobs we are currently working on. What’s the best path?
Unfortunately, this site wasn’t set up to deal with business issues. I suggest you use the links at the side of the page to find a trustee in your area and give them a call. I am confident they will be able to assist you.