Recent reports from the Canadian Federation of Independent Business say almost 20% of small businesses could close permanently during the colder weather and file for insolvency.
It’s a scenario no one wants. Especially Brian Doyle, the president of Doyle Salewski is a Licensed Insolvency Trustee with 40 years of experience. He’s prepared to help small businesses consider solutions other than bankruptcy.
Mr. Doyle said bankruptcy is only one option for businesses of any size that are suffering. There are others, including a proposal they can present to creditors.
He spoke about the help his firm offers small businesses and how he sees dark economic clouds on the horizon.
"I think insolvency filings are going to be substantial because even before the pandemic there was a rising tide," Mr. Doyle told the CBC recently. "We see substantial filings in Canada, including in Ontario and Quebec, throughout 2022."
Doyle Salewski employs a team of professional credit counsellors. They offer a variety of services including consumer proposals and bankruptcy solutions. They also have a range of business solutions services that include business reviews and viability assessments.
Brian Doyle said he’s not surprised business owners are choosing not to risk bankruptcy. He sees more and more hoping for an economic recovery but cautions against too much optimism right now.
"When it comes back it's not going to come back full-blown," he said. "It’s going to be gradual because people are going to be changing their buying habits. That's the hallmark of a depression, not a recession."
Still, he said small business owners who are in trouble financially don’t need to despair.
"Some businesses are finding their way out of debt without going bankrupt by paying a portion or all of their debt without interest over a period of five years, and that's worked out very well for them," Doyle Salewski said.
He stresses that filing for bankruptcy isn’t a small decision. His company also offers comprehensive consultations with a Licensed Insolvency Trustee (LIT). These are the federally regulated professionals who give services and advice to small businesses and consumers with debt problems.
They also said the people who are owed the money need to do their part too.
"Creditors are going to have to be patient and are going to have to work with their debtors who are not paying them. It's going to take some time to work everything out. Everybody is going to be understanding, hopefully."
If you wish to learn more about this topic, feel free visit Doyle Salewski's website at https://doylesalewski.ca/.