Secure your Advance Accounts
If you trade through a limited company make sure you have taken security from your company for any money you have loaned to the company right from the start of operations. Often the biggest unpaid creditors in a company failure situation are its owners and securing these monies will place you much nearer the head of the queue if the liquidator is dividing up what assets are left. In addition, there are often tax problems if the monies owed to the owners cannot be repaid.
Yes, there will be a small cost with your lawyer but it could be a very good investment indeed.
Remember that if you have bank borrowings the bank will probably insist on taking security ahead of you.
If you need help to safeguard your assets, why not join the A+BAC community on Facebook. This is the place where business captains ask questions and share their expertise, so that solutions are always practical and up-to-date. You can also contact Nick on 0800 ASK NICK or email firstname.lastname@example.org.