HOW TO HANDLE BUSINESS DEBT
Many small-business owners are experiencing significant strain under the weight of growing debt as a result of lenders tightening the reins of small business loan borrowers as well as the rapidly increasing prices of raw materials and healthcare. Consequently, about 50 percent of small businesses go under with the first five years.
Business debt lawyers may sometimes recommend bankruptcy. Although filing a Chapter 11 bankruptcy is a very effective way for small business to salvage their companies, however it can be a complex and expensive process. Our experts at ZocLaw.com, discuss other debt relief options:
- Eliminate unnecessary costs to free up cash – Identify and attack parts of the business that got the company into debt.
- Revise the budget – If the debt continues to pile up, then it most likely means the company’s current budget isn’t the best. Creating a budget based on the business’s current circumstances may be more effective. It is important to ensure that your revenue is sufficient to cover more than just your fixed monthly costs. If not, you may find yourself incurring more debt which can take years to pay back.
- Prioritize debt payments – Experts recommend paying of debt with the highest interest rates first. In addition, if you have personally guaranteed any of the business debt, those obligations also qualify as high priority.
- Speak with creditors – Communicate with your creditors. Some creditors may be able to work with you by adjusting the terms of your agreement. Some lenders may also have a hardship program.
- Consolidate your loans – Consolidating your loans into a single monthly payment allows you to reduce monthly costs without damaging your credit.
- Speak to an experienced small business debt relief lawyer – When you default on business debt and creditors close in, it is important to have the proper legal counsel on your side.
BUSINESS DEBT LAWYERS
At ZocLaw.com, small business debt lawyers are well versed in providing aggressive legal defense on behalf of small businesses faced with dire financial circumstances. From filing bankruptcy, debt settlement and tackling merchant cash advance debt, our attorneys will be by your side every step of the way. Schedule your free initial consultation today.