Access to Capital

Proprietorship is the most common legal form of business ownership. In a proprietorship, the business owner is responsible for all liabilities and obligations.

Customers with high credit ratings may be qualified to receive the best, or prime, interest rate on loans from banks and other lenders.

Some lenders charge a fee if you pay more than is agreed upon in your loan repayment terms. This is typically done to protect the lender and ensure that they receive the full loan payment and interest over time.

Your business has obligations to lenders and other companies or individuals in the form of orders placed, services received, or other transactions. Any money, merchandise, or service owed to someone else is an obligation.

Fixed assets include any items that are purchased for your business and used for long-term business purposes. This can include equipment, buildings, machinery, or tools.

You can secure a loan for your small business by accepting a blanket lien from a lender. A blanket lien gives lenders the right to seize almost all your business assets if you default on your small business loan. In the event of default, lenders can only take what is needed to settle your outstanding debt.

In order to claim bankruptcy for your business, you must file with a federal district court and demonstrate that you cannot meet your debt obligations and require either reorganization of your business debts or liquidation of the business assets.