Lack of a small injection usually is not a significant factor in the failure of the business unless this failure is combined with a number of other lender deficiencies.
When a huge retailer has to close all of its stores, it liquidates everything, meaning the inventory and even the shelves and display cases are sold to bargain-hunters, to raise money for the company to pay its debts.
Liquidate comes from the Latin liquidare, meaning “to melt,” or “to clarify.” A recipe might ask you to liquefy the butter, not liquidate it, because liquidate has to do with assets.
To liquidate is to convert stocks or goods into cash by selling them, to finish business neatly, and to clear debts.
The House of Commons determined to apply this to the liquidation of a debt.
I have spoken to Baring about the Commission of Liquidation.
Evidence is often located in the lender’s application for guaranty, in the borrower’s financial statements, or in the SBA loan processor’s write-up, as applicable. Length of Time in Business If there is an early default or early loan problem and a significant cash injection (see discussion below in subparagraph (d)) is not properly documented, a direct link between business failure and the lack of injection should be assumed, and a full denial of liability may be appropriate.
(ii) Default or business failure that occurs more than 18 months after final disbursement Under these circumstances, financial staff should consider a number of factors including length of time the borrower was in business; the relative size of the SBA loan compared to the business assets to be purchased; the type of assets purchased; normal depreciation or obsolescence of the assets; and whether there has been replacement of the assets with leased items, or by assets financed with purchase money security interest financing. Change of Ownership In cases where whole businesses are purchased, asset values may not reflect fair market value and may bring little recovery at liquidation, even a short time after disbursement.Liquidation was her course—the only honest—the only justifiable course.She still had her work at the bank; the progress of liquidation was slow.SBA staff will consider the following in determining whether to seek a repair or recommend full/partial denial: a.Cash Injection Verifying a cash injection requires documentation such as a copy of a check along with evidence that the check was processed (e.g., at least one bank account statement dated before, but close to, disbursement showing that the funds were available and deposited into the borrower’s account), or a copy of an escrow settlement accompanied by a bank account statement showing the injection into the business prior to disbursement.
If you liquidate your old baseball card collection, you will have money to put in your college fund.