Thursday 11 January 2018

The Best Business Debt Help Often Consists Of Common Sense And Practical Advice

By Carl Thomas


Before you go into business you need to come up with a comprehensive plan. Sticking to the plan, with all the day to day challenges, can be difficult. Half of businesses fail within five years. You may think you can borrow your way out of a slow cycle, but that can be dangerous. Getting business debt help is sometimes a matter of heeding practical advice.

If you are spending more money than you are bringing in, the obvious solution is to cut costs. That can be easier said than done, and some owners consider drastic measures like laying off staff before sitting down and going over every expense and looking at which ones are extraneous. You are probably wasting a lot more money than you realize.

Offering credit to customers is a great way to build a client base, but if the customers don't repay you in a timely fashion, you will have unnecessary debt as a result. It might be time to start giving clients calls to remind them of their obligations and get a specific time frame for repayment. Phasing out the credit program altogether could be the best idea.

If you have several small loans, you might get some savings out of consolidating them. You would have one payment instead of several, and you might get a lower interest rate. There are companies that can assist you with this process. They will do the negotiating for you, and collect a payment from you every month to pay off the creditors.

As some point you will have to decide if cutting your losses and selling the company is the most practical solution to your financial situation. You should list your company with a good commercial Realtor who understands the market. Your creditors will be paid out of the proceeds of the sale. If there is any money left, it belongs to you.

If selling the business as a whole is unsuccessful, you can sell it piecemeal. Liquidating the assets individually will include selling the real estate separately from the inventory. Your creditors may have to agree to accept partial payment from you as part of the sale. Some will accept because that's easier and less time consuming than suing you. If others are reluctant, they might be agreeable to an arrangement where you pay them the remainder after the sale.

As a last resort you can always file bankruptcy. If you want to try and save the company, you can file chapter eleven. This will only work if your debt situation is reversible and the company is otherwise viable. When you are so far over your head, the only option is chapter seven, this will get you out of your difficulty, but your personal credit will be impacted for seven years.

Borrowing money to start a company or expand an existing, is not a bad thing. Borrowing too much money and becoming overextended can be a very bad one. Smart businessmen know the difference.




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