Perry Krieger & Associates A business (sole proprietorship, partnership or incorporation) is insolvent if it cannot meet its financial obligations generally as they become due. Early detection of your business debt problem is a key factor in being able to successfully restructure the business. If any of these warning signs are familiar, you may have a worsening debt problem. Contact the professionals at Perry Krieger & Associates Inc. to discuss your financial options today.
- undercapitalization
- history of losses
- an increased level of bank debt, violations of covenants, or defaults
- a decreasing asset base
- decreasing sales and decreasing gross profit
- increased fixed cost relative to profit
- accounts receivable and inventory decreasing at a rate faster than reductions in current liabilities
- large bad debt losses
- large order cancellations
- a lack of management depth
- internal problems
- over-expansion
- payment only of interest or service charges without reducing the principal on debt
- harassment for payment by creditors or collection agencies, including judgments and garnishees
- falling into arrears with your landlord and
- falling into arrears with government trust funds (ie: employee source deductions, HST, or WSIB payments)