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Different types of debts, by bookkeepers for small businesses in Sydney

When you run a business, you know that you will encounter many different kinds of bills and loans that will need to be paid off and some of these will eventuate into debts. Our bookkeepers for small business in Sydney will tell you about the different kinds of debts there are.

There are several types of debts and all are treated differently when a business either need to liquidate them or claim bankruptcy. Some of which include:

  • Unsecured Debts: An unsecured debt is not related to any asset and the creditor does not have the right to claim to these from you
  • Secured Debts: This is where a creditor has the ability to claim an asset of yours until the debt has been paid off until it has been paid
  • Provable Debts: These are the debts that creditors can claim for during bankruptcy, if any money is raised from the sale of your asset they can take a portion of what it owed to them
  • Non-Provable Debts: Creditors cannot claim any money from these and you still need to pay these once you come off bankruptcy
  • Other: These kind of debts include all services that if not paid will be terminated


Feel free to contact our bookkeepers for small businesses in Sydney for all your bookkeeping needs.