What Can You Do to Help Your Business?
Part 2 of 3

Here are three of ten tips to help you out if you are having trouble in your business:

4.         Be Careful About Transferring Business Property to
Personal Property. When it looks like a business may be going under, sometimes the owner will try to desperately save what is left by moving or hiding assets. As a rule, creditors are used to dealing with this sort of behavior and will find them anyway, so try to avoid the fraud charges and just be up front about what you have and what you don’t.

5.              Avoid Preferential Treatment to Any One Creditor. The Bankruptcy Code is very specific on what happens before a business declares bankruptcy. If you have made payments to any one creditor in particular, while ignoring the others, the government may see this as fraud – so be sure that all payments you make to any creditor are on the up and up.

6.                  Protect Your Bank Account. If you owe money to a bank, the wisest thing to do is to keep your accounts in a separate bank from the one you have your loans with. This is typically because the loan agreement will allow the bank to take any funds without prior notice if they think you are flailing.  ■

Related Articles:

What Can You Do to Help Your Business? Part 1 of 3

What Can You Do to Help Your Business? Part 3 of 3