How Can Small Business Owners Avoid Bankruptcy After a Difficult 2020?

Our small business bankruptcy attorney in Tucson, Eric Ollason understands how difficult 2020 was — and how challenging 2021 may still be — for our local businesses that had to close and/or lay off employees because of the pandemic.

As a result of nationwide closure mandates, including those in Arizona, Bloomberg reported predictions that small business bankruptcies will increase by 36% in 2021 as a direct result of COVID-19.

If your business is teetering on the verge of bankruptcy, now may be the time to seek professional help that will provide the answers to your financial questions during these difficult times.

Here’s how you can get a head start.

Talk to An Accountant About the Reality of Your Financial Situation

Often, business owners cannot see the forest for the trees, which is to say they are too close to the business to look at its well-being objectively.

Talking with an accountant — either one you have partnered with in the past, or a new resource — can help your organization with financial planning, which may prevent closure and give you the real-time data you need to make informed financial decisions going forward.

Identifying the Right Type of Loans for Your Financial Recovery Needs

While most small businesses do everything they can to avoid falling deeper into debt, talking with an accountant will provide a realistic ROI, cash flow, and current economic health update that may open doors for the necessary government or private loans.

The Small Business Administration has loan options to help soften the economic fallout from the business interruption that occurred throughout much of 2020 through the Paycheck Protection Program or Economic Injury Disaster Loans that may provide you with a buffer that can help keep your business afloat in times of crisis.

Talk to an Experienced Bankruptcy Attorney About Your Financial Stability

Some small businesses already partner with an attorney who can help them evaluate legal options that apply to their organization, including contracts, intellectual property, taxes, and even potential lawsuits.

If you are considering bankruptcy, talk with our experienced Tucson bankruptcy attorney today to learn about your company’s financial health, and how to heed the warning signs, so you are ready for the next steps if and when it is time to consider your bankruptcy options.

To discover what small business bankruptcy options are right for you, contact our experienced bankruptcy attorney in Pima County, Eric Ollason, to learn more about your legal rights and options to start fresh by calling (520) 791-2707 today to schedule a free consultation.