The Disadvantages of Liquidation According to J Finn Industries, LLC

We have mentioned previously that liquidation has several advantages. Some of these include clearing debts, avoiding legal actions against you as the business owner and the failing business together with reducing costs during the entire process. Jay Findling, New Jersey Businessman, President and CEO of J Finn Industries account on Behance discusses some of these advantages in detail.

However, there are also disadvantages that come along with liquidation. Some of these disadvantages can be avoided if you get professional help during the procedures. To get help during the liquidation process, contact J Finn Industries, LLC - Liquidator in Morganville, New Jersey. 

Penalties for Unlawful Trading

On liquidation, it is the duty of the insolvency practitioner that is appointed to ensure that they carry investigations about the directors. After a thorough investigation, a detailed report is issued and then any director found culpable faces severe penalties. Depending on the claims against you, there might be a penalty like 15 years ban from acting.

Being Liable for Company Debts

You can be liable for company debts if during acquisition of debts you offered a personal guarantee. In occasions where a company swiftly liquidates with the intention of avoiding payment of debts, the owners (directors) can be liable for the debts personally. This happens when it is evident that the directors intended to indulge in improper actions.

In addition, the directors will be responsible for any overdrafts. It is in the power of the liquidator to choose whether to compel you in paying or not.

All the Assets Will be Sold

After a liquidation, you will not have anything left to start another business. Asset liquidation is equal to complete selling off every item of the business. The money retrieved during the process is used to pay possibly all debts the company owes its creditors.


Employees Lose Jobs 

This is one of the most unfortunate thing that happens during a liquidation process. There is loss of jobs making all the employees to start from scratch.

Comments

Post a Comment

Popular posts from this blog

Jay Findling, New Jersey Businessman Expert Especially in Overstock Liquidation

Image
Jay Findling Overstock Liquidation Through J Finn Industries is termed as being the best liquidation service any business can be privileged to enjoy. J Finn Industries literally takes away stress overstock from you and goes ahead to sell off all the excess stock you have. You can rely on Jay Findling to handle overstock liquidation for you without much of a hassle. With his team he will look for buyers who will buy your stock, follow up the money for you and ensure that you get the right value for your money. He steps in to ensure everything runs smoothly keeping you away from any transactions with either suppliers or buyers. You can find Tips for a Successful Business with Jay Findling, New Jersey Businessman on the internet and get to learn how to grow your business and the steps you can take once faced with major predicaments. Jay Findling is a business expert and uses his experience to help both large and small businesses with liquidation services. Through his company
Read more

Jay Findling, New Jersey Businessman And the Business of Asset Liquidation

Image
We beat others to the punch in the area of asset liquidation. Many companies make you think they can handle the process without any stress but in the end they fail in their responsibilities. This process appears to be very challenging for many business owners. If you have gone through the process before, then you would easily understand why they broke down completely while selling off their assets. Jay Findling, New Jersey Businessman account on Dailymotion informs you on how we handle our store closing and why we will always remain ahead of others in this field. You can trust Jay Findling to handle your store closing perfectly for one or two reasons.   Tips And Tricks What most dealers don’t know about asset liquidation is that it is a game of negotiation, and the party with the upper hand will smile home after the deal. That is why it is important you understand the tips and tricks behind such negotiations. If you ever get yourself involved in such business transactions w
Read more

Finish all the Jobs at Hand Before Closing Down Your Business by J Finn Industries, LLC

Image
When we mention closing a business down we are not talking just shutting the doors alone. Jay Findling - J Finn Industries, LLC - New Jersey Businessman well known for valuable advises concerning business closure. He says that business closure involves the owner, business financiers and the customers as well. The customers must be informed and their work finished. A large number of business owners can post a notification in the local newspapers to reach the numerous customers he has.   You can get helpful videos and illustrations from Jay Findling- J Finn Industries, LLC official channel on You Tube . Through the videos you will notice that any outstanding tasks as agreed with the customers must be done. This is to help you avoid being sued or any incomplete contracts.       In circumstances where you cannot fulfill the contracts you will need to return back their payments. When you are not in a position to do the refunds you can discuss with the clients to reach a payment
Read more