SOME BENEFITS OF LIQUIDATION

Article contributed by: Cape Town Liquidation Attorney, Nanika Prinsloo

Liquidation is an excellent legal process to swiftly get rid of business debt. Liquidation is not the end of the world. The purpose of liquidation is to assist business owners to get rid of business debt as fast as possible instead of continuing to trade in an entity that has too much debt and increasing the problem.

Liquidation exists internationally so that business owners can continue to trade, otherwise, if the owner of each business that experiences financial difficulty is not allowed to get rid of the problem and trade at some point in the future again, the economy will shrink and people will be removed from economical activity. Furthermore, if the liquidation process didn't exist, entrepreneurs would be less likely to start new businesses.

It is, therefore, imperative that liquidation exists to remove debt-ridden companies from the system so that the business owner is assisted to continue with business and generate work and an income.

There are many benefits to liquidation. Here are 7 of them:

1. Once you have made the decision to proceed with liquidation, you will feel relieved, empowered and your stress levels will reduce, as liquidation can stop the harassment from the creditor.
2. You do not have to go to Court. We can liquidate the company at the Company's Offices, which saves on time and cost.
3. It is possible to continue to trade if you prefer to. It is possible to do the same business from the same premises with the same staff. *each situation is unique
4. It is possible to keep business assets or buy them back from the liquidator
5. You can keep your staff if you need them.
6. You can keep your clients/customers.
7. It is sometimes much cheaper to pay for the liquidation than to pay the debt.

There is more information available on our website www.empowerlaw.co.za or you can get a FREE 15 minute consultation. Contact writer (Nanika Prinsloo) on 072 8558 106 or email me on nanika@nanikalaw.co.