This checklist debts to pay first template has 3 pages and is a MS Word file type listed under our business plan kit documents.
Sample of our checklist debts to pay first template:
CHECKLIST DEBTS TO PAY FIRST There's a lot to manage as a business owner, including the company vision, employees, and, most common - debts. Unfortunately, debts are inevitable, especially when getting a small business off the ground. For this reason, paying off debts becomes a priority. When trying to pay off debts, it's advisable to categorize and organize them. Business owners should map out each debt owed and include detailed information about each one. For an easy step-by-step approach, follow the Debts to Pay First checklist below. Checklist: Complete Rent Payments Early Rent should always be the top priority for every business. Late rent payments or not clearing the debt can attract a late charge. Landlords require full rent payments after the rent "grace period." Note that many states in the United States allow grace periods and that the rent grace period differs. The standard grace period falls within three to five days. Unpaid rent is a risky debt because the business also risks eviction. According to the law, the eviction process can start a few days after the due date in most states. For instance, in California, if rent is due on the first day of the month, the grace period extends until the fourth day of the month. The property manager can issue a three-day notice to pay or quit for unpaid debt on the fourth day. Pay Your Taxes With time, the consequences of not paying business taxes may grow in severity. For business owners who have employees and withhold taxes from paychecks, get the withheld amounts to the government early. Avoid borrowing those funds after collecting the taxes, as they increase the required debt payments. As an employer, if you don't pay withheld Social Security, Medicare and federal income taxes, there's a penalty. The government may require the business to pay the entire amount of the unpaid trust fund taxes, including interest. In addition, if the taxes remain unpaid, the government can seize business equipment, money owed by creditors, and properties owned. Pay Employee Wages Payment for debts relating to paying employee wages on time is imperative. Depending on the state, severe penalties may arise due to late payroll payments or debt. Some states charge thousands of dollars per employee, while others charge a penalty of 30 days' full wages per employee. Failure to pay employee wages within a few weeks can lead to business closure. Independent contractor payments are not under the same category of payroll wages for workers. Hence, in most cases, the contractor has the same status as an unsecured creditor. So, if a contractor doesn't get paid for a certain job, this individual would need to sue the business to get a judgment. If successful, this results in asset seizure. Work On Clearing Auto Loan Debts Similar to how failing to make payments for a car affects an individual's credit score, a business's credit score also risks plummeting. Therefore, if a car exceeds its budget, it's advisable to sell it and get a cheaper option
