small business in trouble

[mumof3angels]

Hi all I am new to this fourm so if this post is in the wrong place sorry!!

I have a small business in Co.Limerick and with the announcement of the job losses in DELL today this has a huge affect on me.

I am a sole trader and want to know if I close up shop where would I stand when it come to bank loans and creditors loans ( as in my 30 - 60 days before I pay for the product)

many thanks

 

[mf1]

Re: samll business in trouble

"I am a sole trader and want to know if I close up shop where would I stand when it come to bank loans and creditors loans ( as in my 30 - 60 days before I pay for the product)"

Well, you will still owe the money. If that is what you are asking.

mf

 

[mumof3angels]

Re: samll business in trouble

I should have explained a bit better. I know that I would still have to pay the money but do they take into account that you are no longer employed and reduce the payments ie as i have payment proction on one of my bank loans would this cover me for a while and would the creditors take a payment scheme ie 50 euros a week or something like that

 

[Mpsox]

Re: samll business in trouble

In terms of the payment protection scheme, you need to sit down and read the terms and conditions of the scheme to see will it cover your situation. I doubt if it will pay out if you simply "walk away" from your business, you may need to go into liquidation or bankruptcy for it to formally kick in.
In terms of the other creditors, it may depend on how much you owe them, how long it will take to repay them and their own circumstances

Bear in mind that Dell are winding down their manufacturing operations over a 12 month period so that may give you time to take a structured approach to winding up your business.

You should have a conversation with Dell as your customer to understand the impact and timings of their decision and also with your accountant to understand your options going forward