A small business carries $300k in debt plus $175k in operating expenses, with problems stacked everywhere: $87k owed to vendors, $134k in EIDL loans, $105k in truck payments, and a cash-flow gap that runs from January through August every year. The owners face the question of where to start.
Well, there's problems in like every area of the business. We lose so much money in January and February that it takes us till August to really get out of that. Really bad seasonal issues in the winter. You lose so much money in January, it's crazy. And we have about $300,000 in debt. Shoot in any direction and you'll find a problem. Then it just becomes which one do we focus on first? Another $175,000 that is primarily operating expense debt.
We've got state tax loan for debt, $16,000 credit card, $3,000 credit card, $3,000 personal loan. $7,000 personal loan. Uh, accounts payable with vendors, $87,000. Sales tax, $30,000. EIDL loans, $134,000. Loan from his brother is $50,000. Truck payments, $105,000. Mercy goodness, he has a lot.
