Not
ready to close your business? Proven steps for turning failing
business around.
Some business owners feel as though they are against a wall with
debt and contractual obligations. They are exhausted. Their leases,
loans, and contracts pile up, while their money dwindles. Their
business is ruling their life and they just want to get out.
As a frustrated business owner, you may find yourself in this
situation. You may have tried to turnaround your failing company
with little success. And if you have no buyer on the horizon, you
may have decided you've had enough. It's time to close your doors.
But how do you go about doing this? You will find rows of books
at your local bookstore that cover how to start a business, but
little on how to close one. How will you meet the obligations of
your loans and lease? Do you owe money to the IRS, individual agencies,
or contract workers?
There are many items to consider when you close a business. And
you have some choices to make when it comes to getting rid of debt
and folding your company. Let me explain.
Straight
talk about business bankruptcy and closure
Secured Credit Cards are one of two types of credit cards. There are unsecured credit cards that generally only require your signature and a monthly interest rate, and perhaps an annual fee, and they will offer the consumer a designated line of credit. A secured credit card is much different, but it is an excellent way to create your credit history, or to build it back if, for instance, you have filed for bankruptcy in the past seven years or your credit is not looking so good.
Secured credit cards are easy to obtain by the general public because you are securing your line of credit with your own resources, usually with a savings deposit. This deposit will typically range from $500 to $1000, and your credit line with a secured credit card is then a percentage of that deposit, typically 50 to 100 percent. The issuing company will pay interest on your deposit, but in return there are application and processing fees associated with this type of card, sometimes totaling hundreds of dollars. Before you apply, be sure to find out what the total fees are and whether they will be refunded if you are denied a card. A secured card requires an annual fee and has a higher interest rate than an unsecured card.
Secured cards are usually easier to acquire because you are supplying the capital that you will be charging against, and this is the reason why they work well as a first credit card, or one you will be using to build your credit back up. You supply the capital and for the fees, they will manage your card and account for your transactions in a monthly statement for you.
Debit cards are a great example of how the secured credit card works. When you open an account at your neighborhood bank, they issue you checks and a debit card. You are welcome to use the debit card anywhere that credit cards are accepted as long as you have sufficient funds in your bank account. When your balance hits bottom you can no longer use your debit card until you replenish your account. It is this same principle with a secured credit card. As you run down your account you will periodically need to deposit more so you have the funds to make charges. These deposits are made by paying off the balance of the credit card in full each month. If you do not, you may forfeit your deposit and have the right to charge to the card revoked.
The process of a secured credit card is simple, but it is more costly when you include the fees, and for this reason, it is more inconvenient than an unsecured card. So to improve your credit history, keep your card with responsibility especially if you are planning any loans or investments in the future and will need record of good credit payments. Of course, keep in mind that the higher your credit score, the better your credit history will be. With a reputation of bad credit, your doors of opportunity will close quickly!
Copyright (c) Greg Aldrich
About the author:
Greg Aldrich helps match consumers to the appropriate credit cards. His site, www.FindYourCard.com,allows anyone to compare cards sorted by features and apply online.
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Straight
talk about business bankruptcy and closure
Are You a Candidate for Bankruptcy?
Types Of BankruptcyThere are two different types of bankruptcy that can be used in most cases. Each one has a different set of rules and guidelines that you must follow in order to qualify for and get the bankruptcy. If you are considering bankruptcy, it is important to understand the differences in these types of bankruptcy and to choose the one that best fits your needs and the one that you qualify for. Chapter 7 BankruptcyThis is the type of bankruptcy that is most often used by individual debtors. It allows for an individual or married couple to wipe out their debt by taking propert. . .
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