The realization that your business may be going bankrupt is frightening. However, if you are seeing signs that your business is going under, it’s important to get the help you need as quickly as possible. Holding out hope that things will turn around or being in denial will only make it worse in the long run. If you recognize these signs that your business is struggling financially, you can work with an experienced business bankruptcy lawyer to help you minimize the damage and get back on stable financial footing.
1. Your Earnings Are Slowing Down
If you’re noticing that business is declining and your earnings are slowing down, you’ll soon not have enough to pay your business debts and obligations. This is often the first indicator that your business may be in financial trouble.
2. Increasing Interest Expenses
As your profits begin to slow down, you’ll notice that your interest rates rise as a percentage of your revenue. This means that your interest rates will prevent you from actually eating into your business debt, and whatever payments you’re making are only going toward interest. If you can’t pay all of the interest you owe, your debt will continue growing because your balance will rise and you will be charged interest on what you have accumulated. This has a snowball effect and can be difficult to get out from once the process has started.
3. Your Losses Are Rising
If you’re finding that you are losing money on sales instead of making a profit or breaking even, this is another clear indicator that you will soon be in a situation where you’re not able to pay your business debt obligations. While some losses are expected with any business, even successful ones, if you begin to experience more and more losses, it’s time to take a hard look at where your business is really at.
When To Get Help
Depending on what type of business you own, you may or may not be held personally responsible for the debts of the business. If you see that your business is hurting financially, it’s critical to hire an experienced business bankruptcy lawyer. Joel M. Aresty, P.A. can help you find out where you’re at and what your next step should be, so you can overcome the challenges ahead. Call now for a consultation at 1-855 DOC LAWS.