Going Out Of Business? What You Need To Know

15 February 2017
 Categories: Law, Blog

If you are planning to end your business, whether it is out of choice or due to financial hardship, there are several loose ends you will need to clear up before you can officially close up shop. The following are some of the things you should not forget about when you close your business:

Contact Your Suppliers

As soon as you know you will be going out of business, be sure to contact your suppliers as soon as possible. Once a vendor knows you are going out of business, they may not allow you to make any more small orders should you need them. They could also pull your line of credit if you have it. If you have any leftover inventory, you may be able to return it to your suppliers. You will need to provide an itemized list of those things along with their value to make the process smoother.

Talk To Your Utility Providers

You will also need to let your utility providers you will no longer need their services after a certain date. You will need to pay all bills, settle accounts, and pay any fees that may be due. If you have a deposit with any of your providers, be sure they have a correct address so that a check does not get lost in the mail.

Talk To Your Bank And Credit Card Providers

Your bank and credit card companies will also need to know about your impending closure. Cancel all of your credit cards that are used for your business and pay off the balances. If you still have an outstanding balance on a business loan with your bank, you will need to discuss how to settle those as well. Your lenders may require collateral to make sure they are paid.

Once you know you are going to close your business, you will need to let your employees know as soon as you can. This will provide them with time to look for a new job. Although you will want their help during the closing, you should not put them in a situation where they will be out of work for too long. You should also let your customers know. They will not only appreciate your honesty, but it will also give them a chance to make any last minute orders or pick up anything they currently have on hold with you. This will ensure you have a good customer base should you decide to re-open some day.

If you have legal questions about going out of business, contact a law firm like Souders Law Group