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.
Consolidating numerous small loans into one payment can save you some money each month. You might be able to lower the interest rate this way. For a nominal fee, you can hire a company to do the work for you. This company will negotiate with the creditors and collect money from you every month to make the loan payment.
If you finally come to the decision that saving the company is too difficult, and you just want out, selling the business is always an option. Depending on your situation, this could be a good solution. You will need an experienced commercial Realtor. If you find a buyer, you will have to pay your creditors at closing, and you get whatever is left.
Not all buyers are interested in taking on a struggling company, and you may be forced to liquidate the assets piece by piece. If this is the case, you need to come to some understanding with your creditors. They might be willing to accept a partial payment in lieu of suing you for the total amount owed. Others may insist you repay the entire amount over a period of time.
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.
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.
Consolidating numerous small loans into one payment can save you some money each month. You might be able to lower the interest rate this way. For a nominal fee, you can hire a company to do the work for you. This company will negotiate with the creditors and collect money from you every month to make the loan payment.
If you finally come to the decision that saving the company is too difficult, and you just want out, selling the business is always an option. Depending on your situation, this could be a good solution. You will need an experienced commercial Realtor. If you find a buyer, you will have to pay your creditors at closing, and you get whatever is left.
Not all buyers are interested in taking on a struggling company, and you may be forced to liquidate the assets piece by piece. If this is the case, you need to come to some understanding with your creditors. They might be willing to accept a partial payment in lieu of suing you for the total amount owed. Others may insist you repay the entire amount over a period of time.
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.
About the Author:
Don't look everywhere for info about getting business debt help when you can just receive advice from our consultant now. The website that contains all the details appears here at http://www.pacificcapitalconsulting.com.
No comments:
Post a Comment