Even though the economy is improving, paying bills can be a difficult task. You might find yourself unable to get out the door due to the economic crunch, collapsed market for real estate, and job market showing record monthly losses.
Many business owners feel the same way. Owners have to manage payrolls, rents and taxes as well as their business loans. Surprisingly few business owners realize that there are proven ways to help when bills cannot be paid.
The ability to change a company’s finances in an economic downturn can cause financial problems.
hour. Owners of struggling businesses
Do not be afraid of being called by creditors. Owners should change their mindset. Although debt can be a problem it can also be solved by strategic thinking.
Six steps have been developed by professionals to help business debtors identify the best plan and increase cash flow. To help you choose the best plan, business owners with debt should talk to your lawyer, accountant, or trusted advisor.
These are the options your company has to address its debt problems.
Rehabilitation. Businesses can save their business and pay their debts by extreme cost cutting.
– Refinancing. Owners of businesses
You can ask for new terms, such as lower payments. This can allow you to have more capital for your business.
– Debt resolution. An Authoritative Third Parties is a way for owners to delay or reach a better settlement with their creditors.
– Equity capital. Capital can be exchanged between businesses and owners.
– For Sale. The owner can decide to sell the business or use the proceeds to repay debts.
– Liquidation. The owner can either sell a portion of their business, or declare bankruptcy. This will have a devastating effect on owners, employees, and spouses.
As an alternative to bankruptcy, services are available to assist businesses in recovering from debt. One company, Performance Source Inc. (www.performancesourceinc.comNegotiating directly with creditors is a way for business owners to save time, money, and stress. Negotiations result in debt reduction so that the business can continue and grow with an improved balance sheet.
The goal of business owners is to
Before debt becomes overwhelming, it is important to seek professional assistance. A business owner can reduce his debt and still do what he loves best: run his business.
