[USER]

Business debt – $1.5M, half of that is SBA/bank loans and the rest is our inventory supplier bills.

Revenue is all from inventory sales, inventory = $500K. So $1M in debt with no revenue to recover it.

Minimum payments for the banks are ridiculously high as they’re amortized over 5 years.

Ive been running a different company and didn’t see my partner tanking this one until he was blatantly taking funds and not working.

The industry has changed, profit levels were always too low, and I don’t think this company can be fixed to become profitable.

So I expect best case scenario is I’m splitting the debt with the partner.

$500K debt has me scared to death.

What are my options?

[Cody]

Run the company long enough to pay the debt then get out.

[Travis]

It sounds like you’re both on the loan? Whatever yo do you’re probably going to have to work together on this to close the business.

Maybe you can have your partner take more of the debt to pay off the money that he took from the business.

If you can make that work it would be a big win for you.

I’m sorry, I don’t have a great answer on the $500K debt.

That’s tough and it will take a while to dig out of.

The silver lining is that it will probably take a lot less time once this partnership is terminated.

[Nathan]

Check with a business attorney. I would probably try to run the business until it pays off the debt even if it isn’t profitable.

Idk about business bankruptcy or how it will affect your credit if that’s an option for you.

[Shane]

Be carful with those SBA loans if there in your name you might get stuck with them.

Be extra careful if these are covid loans they skipped rules and stuff when giving them out and go back and capture all that missing information if you try to do anything with them.

Good luck on your journey.

[Author]

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