SBA Offer in Compromise - How to Close a Business

If you are reading this and thinking to yourself "great, you can help me pay off my debt, but how do I close my shop?" This is the article for you.

Just like opening a business, closing a business requires a plan. The difference between the closing with a plan and without a closure plan is similar to the difference between jumping from a plane, with or without a parachute: it is going down in both cases, but careful planning can be the difference between crashing into a pile of fire against slipping for a soft landing.

Some tips to avoid a clash of fire:

Do not be a ghost - When business is going badly, the tendency is to want to run and hide, especially from your lender. Non Ignoring your banker is the surest way to come his way. Having a banker who loves is a precious commodity. Having a banker who does not like you can make it difficult or impossible to settlement discussions. Return calls, letters, e-mail. It could mean the difference between success and resolve a legal judgment made against you.

Save Your Pennies For That Rainy Day Upcoming - Once the business is closed and businesses were liquidated, its time to do your bidding settlement. We can only propose a transaction if you have something to offer, so once you know for sure that there will be closing and the search for a solution, start stashing away cash and looking for ways to raise money to bid. Friends, family, home equity loans, and credit cards are typical sources of cash.

Get Your Ducks In A Row - The time to decide what your strategy should be upfront settlement will make a concrete offer. If you work with a professional like DLA, you can determine what the best strategy might be, and what is more likely to be approved by your lender and the SBA. There's nothing more disappointing than for a borrower when they do everything that the bank demands, only to have their settlement offer rejected by not knowing the parameters of the process of entering OIC, and not have a backup plan.

Ask permission before having a sale closing - While the idea of ​​cutting prices to raise money may sound good in theory, make sure the lender is OK with it. If they think they gave away the store (and their warranty), you can get an earful from your banker. Even worse, you may be able to compensate for the difference between what you sold the items and what the bank thinks they were really worth.

Settle with who Can - Many manufacturers will settle with you if you can make a cash offer. To tie these outstanding, you may be able to save the headache of call origination and personal judgments.

Play Nice with the owner - Next to your lender SBA, the landlord may be held as successful as you go, as they are losing years of rent that was expected. In order to minimize the damage, try to find a qualified tenant for the space. When I finally quit, leaving the space "broom clean" so that the owner is not locked to clean up your mess .......