An emergency business loan is a desperate need for a company that has critical cash flow problems.
Quite often the desperation for the loan is reflective of the interest charged. Maybe not Wonga rates but steep all the same.
But is an emergency business loan the right move for you? Are you having to give a personal guarantee to secure the loan?
If you are, then why have you done this? Surely the whole point of setting up a limited company in the first place was to separate your private life and finances from your business risks? So why mix them up now!
Why not see if your creditors will help to support your company.
After all they took the risk to deal with your company in the first place so why not see if they wish to protect their investment.
A Company Voluntary Arrangement is in essence a question put to your creditors that asks if they wish to support your company by allowing their debt to be repaid out of future cash flow.
This route has to be better than an emergency business loan – so hit that STOP button now, after all, you are in business to increase your net worth, not to decimate it!
Call TaxGone on 01302 815846 to make things simple.
TaxGone - Company Voluntary Arrangement - CVA Specialists
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