View Full Version : Dilemma
I started a Small exporting business a few months ago. For the first 4 months I was making out like a bandit. Over the past few months It's totally died.
I owe about 250K to several major corporations as well as some small businesses. I have about 300K in receivables. I am set up as a C corp.
I am going to shut the business down. Should I just walk away and take the 300K or wait till I get paid and pay those I owe. Half the people are telling me to screw everyone and the other half are man up.
This happened to me in 1985. What did I do? And what would you do?
Stangkiller
07-22-2013, 4:37pm
Cease operations make attempts to collect, and pay off the debts as collections are made, there's still $50k of your cash in there to collect.
:cheers:
should I mention i'm an internal auditor for a billion dollar construction company?
RED-85-Z51
07-22-2013, 4:41pm
Take the $$, invest in Microsoft... and stack dividends...
But really...pay them bills, take your profit, learn from it...
Cease operations make attempts to collect, and pay off the debts as collections are made, there's still $50k of your cash in there to collect.
:cheers:
should I mention i'm an internal auditor for a billion dollar construction company?
who might that be?
lspencer534
07-22-2013, 4:56pm
Did you have personal guaranties to your creditors? If no, screw 'em. Your corp owed the debts, and that's who your creditors extended credit to.
Cybercowboy
07-22-2013, 4:57pm
As always in business, do the right thing. It's the only long-term way to stay in business, even if the current business is on its ass.
Did you have personal guaranties to your creditors? If no, screw 'em. Your corp owed the debts, and that's who your creditors extended credit to.
I stared the business on wing and a prayer. People gave my company lines of credit because I had significant business to give them.
lspencer534
07-22-2013, 5:26pm
I stared the business on wing and a prayer. People gave my company lines of credit because I had significant business to give them.
It was a serious question, but I think what you did was pay your creditors from your receivables. Otherwise, you wouldn't be posting about it here and be branded a swindler.
Cybercowboy
07-22-2013, 5:32pm
Still trying to think exactly what drugs we exported back then. Shrooms?
It was a serious question, but I think what you did was pay your creditors from your receivables. Otherwise, you wouldn't be posting about it here and be branded a swindler.
Thats what I did. And being branded a 'Swindler" would not have really happen. dozens of other in the same boat as i did just that and managed to start up again.
It worked out in the long run because a few years later I did it all over again and people remember what I had done came out to help.
Burro (He/Haw)
07-22-2013, 7:09pm
And what would you do?
Beats me. :shrug:
Still trying to think exactly what drugs we exported back then. Shrooms?
'85? Could be. MAYBE a tick early but could be.
lspencer534
07-22-2013, 7:48pm
Still trying to think exactly what drugs we exported back then. Shrooms?
Plastic. That was where the future was. No...that was 1967. IKEA...nope, that was 1945. Oooh! Oooh! I know! I know! Steve Jobs got fired at Apple, and Vite1 sold his body organs to Asian markets! Right? Right?
:seeya Paul,
Sorry to hear about your troubles. I know that as a stand-up guy, you're going to do the right thing, as best as you can.
Hopefully you can bounce back stronger than ever!
:thumbs::thumbs:
:cheers:
I'd do my best to pay off the debts. They took a chance on you to help you so no need to screw them. Never burn your bridges...
Jeff '79
07-22-2013, 8:23pm
If your business is incorporated, then go bankrupt and call it a day.
Start another corporation, and sell the stuff, and pocket the money.
There is no personal liability if you have a corporation, so you don't take it personally, and the creditors don't either.
As bogus as it sounds, bankruptcy is built into the cost of doing business.
I see it everyday.
There are only so many fish in the barrel, so they'll do business with you again....Eventually.
:seeya Paul,
Sorry to hear about your troubles. I know that as a stand-up guy, you're going to do the right thing, as best as you can.
Hopefully you can bounce back stronger than ever!
:thumbs::thumbs:
:cheers:
Alan, it was 1986. I bounced back OK since then.
If your business is incorporated, then go bankrupt and call it a day.
Start another corporation, and sell the stuff, and pocket the money.
There is no personal liability if you have a corporation, so you don't take it personally, and the creditors don't either.
As bogus as it sounds, bankruptcy is built into the cost of doing business.
I see it everyday.
There are only so many fish in the barrel, so they'll do business with you again....Eventually.
It may be built into the cost of doing business but it is not built into my character.
Jeff '79
07-22-2013, 8:44pm
It may be built into the cost of doing business but it is not built into my character.
Then why are you asking in the first place?
I wish you well, however you decide to proceed.
Then why are you asking in the first place?
I wish you well, however you decide to proceed.
It happened to me in 1986.
The reason I am asking is when I was reading another thread where a Poster made it clear You and I should pay for others mistakes or stupidity it brought back that moment when I realized the only person I would really screw over by being self absorbed and us the system was myself.
regrettably 53% of America don't believe the same
Jeff '79
07-22-2013, 8:57pm
It happened to me in 1986.
The reason I am asking is when I was reading another thread where a Poster made it clear You and I should pay for others mistakes or stupidity it brought back that moment when I realized the only person I would really screw over by being self absorbed and us the system was myself.
regrettably 53% of America don't believe the same
Yep, it's become the norm rather than the exception... It is what it is, and unfortunately, businesses have to adapt or go under.
Yep, it's become the norm rather than the exception... It is what it is, and unfortunately, businesses have to adapt or go under.
Or leave the country. What's that flushing sound I hear?
lspencer534
07-23-2013, 1:06pm
It happened to me in 1986.
The reason I am asking is when I was reading another thread where a Poster made it clear You and I should pay for others mistakes or stupidity it brought back that moment when I realized the only person I would really screw over by being self absorbed and us the system was myself.
regrettably 53% of America don't believe the same
67.7% of all statistics are made up on the spot.
jaxgator
07-23-2013, 1:32pm
Trying to decide if the OP is serious or if it's a setup to prove some point.
He was serious and, umm...
Alan, it was 1986. I bounced back OK since then.
It happened to me in 1986.
Trying to decide if the OP is serious or if it's a setup to prove some point.
:dance::shots:
Setup. In another thread someone kept of demanding that Americans OWE others who f**k up. I disagreed. It reminded me of this failure I had.
Steve Austin
07-23-2013, 2:29pm
Just do the right thing.
:iagree: Always the right answer.
67.7% of all statistics are made up on the spot.
I used the voting results from the last presidential election. We know they were made up but no one cares.
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