How a Small Business Can Deal with Debt During COVID-19
Small business owners in Ontario need to take action to avoid falling into crippling debt during the COVID-19 pandemic.
If you’re a small business owner, you can take steps to mitigate your financial losses. Here’s what you should know about getting debt help in Ontario.
Small Business Debt is Rising in Ontario
The Canadian Federation of Independent Business (CFIB) estimates that the vast majority of small business owners in Ontario have taken on debt during the pandemic. Collectively, they’ve amassed close to $50 billion in debt. That’s roughly $150,000 for each small business. Where are they finding the help? According to the CFIB, they’ve turned to:
- Personal savings (43 percent)
- Credit cards (36 percent)
- Bank loans (19 percent)
- Retirement savings (13 percent)
- Mortgages (10 percent)
- Loans from families and friends (10 percent)
As a small business owner, taking on debt this way can have a detrimental effect on your finances and stress level. When your family’s finances are at stake it means everything is riding on your business’ survival.
The good news is, there are other options.
The Government of Ontario has many resources for small business owners through the Department of Economic Development, Job Creation and Trade.
Small Business Enterprise Centres throughout Ontario offer free advice from qualified business consultants who can also review your business plan. Business Advisory Services offices can help you access government programs and financial assistance. The province also provides a free e-Business Toolkit that teaches you how to use the internet to increase sales and marketing.
Speak with Licensed Insolvency Trustees
Before you dive into debilitating debt that could affect your family’s finances for years, seek out the help of a licensed insolvency trustee. A professional can guide you through some options you may not know about.
At D. & A. MacLeod Ltd., we offer a variety of corporate services and we can help you find your way forward. For example, we can help you avoid bankruptcy by filing a corporate proposal. Our team can also assist you through corporate restructuring to help rebuild the value of your business and protect it from creditors.
D. & A. Macleod Offers Debt Help To Small Businesses In Ontario
COVID-19 has had a devastating, long-term impact on Ontario’s small businesses. Thankfully, with our more than 65 years of experience, we can find the best solution for your unique challenges. Contact us today to make an appointment with one of our licensed insolvency trustees in Ottawa or at a location near you!