Don't Gift Money to Your Business - Be a Secured Creditor

Discussion in 'Business Accounting, Tax & Legal' started by RPI, 1st Feb, 2017.

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  1. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

    Joined:
    18th Jun, 2015
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    Location:
    Brisbane
    Hi All

    New year and the Christmas Cashflow issues have sent some more people under.

    Those that gifted their equity to the business are now at the back of the que behind the
    Secured Creditors
    Unsecured Creditors
    Liquidator/Administrator

    If they had instead setup a disc trust, gifted the equity to it (or loaned in some circumstances) and then lent that money to the business via loan agreement with a PPSR charge then their entity would have been at the head of the cue, or at least only second to the banks.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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