The COVID-19 pandemic has had a significant impact on small businesses across the country, including those in South Florida. If your small business is having trouble paying your bills or paying off debts due to the slowdown in revenue, there are various things you can do to help your business. The Fort Lauderdale bankruptcy attorneys at LSS Law have put together five tips to help small businesses who are having financial difficulties due to the Coronavirus outbreak.
#1: Ask Customers for Support
Many small businesses across the country have been asking for support from loyal customers. If you’re a restaurant or your company has an online store, you can notify customers that you are still open for business. You can also ask supporters to buy a coupon or gift card to use at a later time. Getting innovative and creative with your business during this time just might help some small businesses remain afloat.
#2: Negotiate with Suppliers & Vendors
Everyone is aware of the challenges companies are facing due to COVID-19, so suppliers and vendors may be able to work with you. You can try to negotiate lower payments or longer payment terms with your vendors or suppliers.
#3: Talk to Your Lenders
If your business can’t pay off debts due to COVID-19, they might be able to work with you to restructure your debt temporarily. If you know that you won’t be able to pay off debts, you should contact your lenders as quickly as possible. There are some lenders that are allowing debtors to request deferments on small business loan payments.
#4: Liquidation Through an Assignment
Similar to bankruptcy, an Assignment for the Benefit of Creditors (ABC) you can obtain financial relief. This is a state-regulated process that allows you to choose an assignee to take control of your assets, liquidate them, and use the proceeds to pay your creditors. This process helps you release liability for your business.
#5: File for Chapter 11 Bankruptcy
If your small business’ financial burden can’t be resolved with short term solutions, you might consider filing bankruptcy. Chapter 11 Bankruptcy can help a company restructure its finances while it remains operational. With the Small Business Reorganization Act of 2019, small businesses have the ability to take advantage of Chapter 11 like never before.
If your small business needs help obtaining financial relief during this time, our team at LSS Law is here to help. Get in touch with our Fort Lauderdale bankruptcy attorneys today to schedule a virtual consultation!