Five Things Every Business Owner Needs To Do

Based on my 25 plus years of experience, business owners need to make sure they do the following:

If you lend money to your company – take security!

The bank takes security for the money it loans to your company, why shouldn't you? Banks generally do not have an issue with this. They will treat the money advanced as equity if you give them an assignment and postponement of claim. Assuming you do not do this at the eleventh hour, you will be a secured creditor in the event of insolvency, giving you priority over unsecured trade creditors. You will be unsecured creditor if you do not take security for your loan. Make sure you do this when you advance funds. Non-arm's length security taken within a year of insolvency is effectively void.