What Happens When a Business Goes into Foreclosure?

Running a business always has its risks. What matters is being aware of these risks right from the start and finding ways to avoid them moving forward.

One of the most common issues that business organizations often encounter is in the financial arena. When funds are not properly managed and the expenses become greater than the cash coming in, there’s bound to be a problem. And if this is not resolved sooner, a company can go into debt or worse, become a subject of foreclosure.



A foreclosure occurs when a borrower or debtor fails to pay or defaults on his loan and the bank or lending institution takes back the property involved. A default can happen when a borrower often makes late payments or fails to act on other requirements of his loan such as maintaining hazard insurance on the property. It is when the debt remains unsettled that the property involved is seized and sold.

If your business is experiencing financial problems, you may need to consult with a financial adviser as soon as possible. It would also help to get in touch with a foreclosure attorney to find out your options early on.

Commercial foreclosure is similar to residential foreclosure. It is categorized into the non-judicial and judicial.

Non-Judicial Foreclosure

A non-judicial foreclosure does not involve the participation of a court. It is also referred to as a power of sale foreclosure and this clause is normally included in a deed of trust or mortgage allowing a trustee to sell the property without court supervision.

5 Tips to Reduce Travel Expense in Small Business

Travel is one of the highest discretionary spend for many small business owners. It is also one of the spend items that you cannot skimp on either. You have to let employees travel to meet with customers, attend conferences and find prospects. There is only so much you can accomplish via phone or video conference. While there is no way to avoid travel there are ways in which you can reduce the travel expense without sacrificing your business. Below we share 5 tips to help you achieve that goal.

1. Book in Advance

Whether employees do their own booking or you plan trips for them as a business, booking in advance reduces hotel and flight costs. The closer you get to any trip, the higher the prices tend to get. Plus, when you book in advance, you have time to wait for the best days of the week to book your travel plans. You’ll also have more flight and hotel options to consider. If sending employees on the red-eye is the cheapest option, you’ll be able to book that flight before it fills up.

2. Create a Travel Policy

Instead of determining a specific travel budget or capping employee spending at the same amount each time, create a travel policy that employees must follow. This might mean specifying what kind of expenses require prior authorization or making a list of preferred hotel brands and airlines, especially if your business has a deal or an account with those brands. If you ask for preapproval for things such as flights and hotel bookings, your employees will have a harder time waiting until the last minute to book their travel plans.