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Question
Im beginning a merge with two other companies to become one new company. My one new partner has a lot of old outstanding business debt. the question is how can i word that into a contract so his old debt doesn't effect the new business.
Dear Tony:
Thank you for your inquiry. Your partners previous liabilities will not affect your new business unless you intend to utilize the same vendor or suppliers, who may be aware of his involvement in your new venture. If the old business is gone, and your partner did not guarantee the debt or it is really old (usually 4-7 years) it is likely charged off or forgotten. Furthermore, if you intend to apply for new credit be aware that most banks will require a personal guarantee from the owner(s) for new revolving accounts.
As for wording anything into a contract, please seek legal counsel on that type of language. But as a suggestion I know people who request a partner to sign something that would forbid them from utilizing any new business credit cards as they may be inclined to run up a tab and not pay.
It might also be a good idea for your partner to consider settlement to reduce his old liability if he personally guaranteed any of it so it does not increase his financial needs in the future, which could ultimately affect your cash flow. If you are interested, we provide a success based service which can help him in this process. Please feel free to visit our web address. www.settlesource.com
Hope this helps, and as always I appreciate any positive comments or ratings you wish to provide.
Respectfully,
Christine Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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