How to Save Your Company with Business Debt Settlement
If you are running a business today, you will concur that these are indeed tough times. Not only do you have to compete in a globalized marketplace but you also have to contend with a more informed consumer. These problems are confounded by poor cash flow which inevitably leads you to the financial markets for loans.
According to the SBA Office of Advocacy, one of the main reasons for business failure today is poor cash flow. This has forced many startups and small businesses to borrow heavily and this debt burden eventually brings them down. The 2013 NSBA Mid Year Economic Report says 88% of small business carried debt and a large number were at risk of default. Late loan repayments and default ruins your company’s credit score and can eventually lead to bankruptcy. This is where business debt settlement comes into play.
Business Debt Settlement in Brief
When your business carries a heavy debt burden, you will not have much leeway in the operations. There is no access to more credit and you will be risking your business assets in case of default. Spiraling debt can also ruin your brand’s reputation, especially in a world where consumers have easy access to information.
When you join a creditors relief program, you will be leveraging the expertise of a highly qualified financial team. Truth be told, most businesses lack the financial skills required to firmly guide their way out of the debt rut. In most cases, the business owner will start acting reflexively and this will drive the company further into debt. Many business owners are arm twisted by lenders to sign agreements which risk their assets.
When you seek company debt help from an established organization, the following will happen:
- Comprehensive analysis of your finances – A financial team will go through your records to get a better picture of your situation. At this stage, you are supposed to reveal everything about your debts in order to aid in the debt resolution.
- Tailored program – There are many debt relief options available on the table. These include debt consolidation, debt negotiation and settlement,debt management, and debt reduction among others. You will work together with the financial advisor to find the best option for youdepending on your specific debt situation.
- Debt resolution – This is the hard part and it involves a lot of hard work from your debt relief provider. Luckily, this is a team that comprises both attorneys and financial experts and they will use all available laws to get you debt relief. The techniques used including debt negotiations and settlements are legal and their main goal is to helpyoufocus on your core business as the experts get the job done.
- Financial guidance – As you start settling your debts and the company’s finances start looking up, you will also get advice on how to stay on the right path. This advice is invaluable in running your businessand avoiding further debt.
With debt settlement for your business, you will reduce the risk of bankruptcy which can erase your legacy. You are also able to protect your assets from creditors in case of default.
Drew Barrymore is a financial consultant with over 28 years’ experience in the industry. Today he focuses on creditors relief options including business debt settlement. Drew lives with family in New York.