Starting a business comes with never ending obstacles on the path. For example, has this ever happened in your business: You are passionate, ethical and competent. You are working hard. Yet when you meet potential clients, they constantly, doubt you and the business. Despite your best efforts, the potential client carries a lingering doubt about
Imagine You leave a comfortable job to start a business. Your boss discourages you from doing it. You start the business from your garage. Nobody knows your business. You work really hard at building it. You employ staff. You move to bigger premises. You bring investors on board. Over time, the business grows from strength
When business secures debt, there are legal obligations between the parties. If the business does not fulfil those obligations, for example, making timely payments, the funder can seek legal remedy. The funder may repossess assets related to debt or file for liquidation of the business
Debt versus Liability A provider lends an amount to the business & there is obligation to repay the debt Liability – ALL obligations, something owed to someone Examples of Liabilities: Accrued expenses Trade creditors Generally debt has interest, liabilities may or may not have interest.