Nobody goes into a business planning to fail. Borrowing money to get it started and keep it going is to be expected. Unfortunately, within five years, half of new businesses are gone. To try and stay afloat, some owners continue to borrow in hopes that times will get better. Most of them end up needing serious business debt help.
One of the first things you can look at is how much money goes out each month versus the amount of money coming in. If you are spending more than you make, the next step is to itemize the expenses and find ways to cut. Instead of starting with layoffs, you might try eliminating extraneous expenses. The waste in your budget is probably bigger than you realized.
Offering credit to customers might seem like a great marketing gimmick, but if those customers take advantage of the courtesy, you could end up with a lot of outstanding debt on your books. If this is the case, you should contact customers with credit lines. You might offer them a future discount if they zero their balances. If you owe money to creditors and suppliers, you need to call them and let them know when they can expect a payment.
Loan consolidation can be helpful if you have several small loans you are trying to pay off. Restructuring the debt may even lower your interest rate. You might hire a company to handle the consolidation on your behalf. They can negotiate with your creditors and collect a payment from you each month to pass on to the lender. The time this company saves you might be worth the cost.
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.
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.
Filing bankruptcy is always an option although it should be at the bottom of your list. You can attempt to save the company by filing chapter eleven. This will work if you have a viable company and reversible debt. If the business is a lost cause, you can file chapter seven. This will get you out of arrears, but will also ruin your personal credit.
Owning any business, and making a success of it, can be challenging. Borrowing money is a normal part of the process. Borrowing too much, or not using the funds wisely, are two of the easiest ways to ensure failure.
One of the first things you can look at is how much money goes out each month versus the amount of money coming in. If you are spending more than you make, the next step is to itemize the expenses and find ways to cut. Instead of starting with layoffs, you might try eliminating extraneous expenses. The waste in your budget is probably bigger than you realized.
Offering credit to customers might seem like a great marketing gimmick, but if those customers take advantage of the courtesy, you could end up with a lot of outstanding debt on your books. If this is the case, you should contact customers with credit lines. You might offer them a future discount if they zero their balances. If you owe money to creditors and suppliers, you need to call them and let them know when they can expect a payment.
Loan consolidation can be helpful if you have several small loans you are trying to pay off. Restructuring the debt may even lower your interest rate. You might hire a company to handle the consolidation on your behalf. They can negotiate with your creditors and collect a payment from you each month to pass on to the lender. The time this company saves you might be worth the cost.
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.
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.
Filing bankruptcy is always an option although it should be at the bottom of your list. You can attempt to save the company by filing chapter eleven. This will work if you have a viable company and reversible debt. If the business is a lost cause, you can file chapter seven. This will get you out of arrears, but will also ruin your personal credit.
Owning any business, and making a success of it, can be challenging. Borrowing money is a normal part of the process. Borrowing too much, or not using the funds wisely, are two of the easiest ways to ensure failure.
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.
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