In today’s society, there are many alternatives for a business to get relief from their debt obligations. These include but are not limited to business debt settlements and business debt restructuring.
What is business debt?
Business debt is the money that a small business has to borrow. It could be borrowed from banks, credit unions, other financial institutions or even private investors. In the world of business, debt is often seen as a necessary evil because it can help finance growth and expansion while providing capital to cover operational costs.
The problem with debt is that it can quickly grow out of control if you use it for things like paying for salaries or advertising, rather than for more tangible items like inventory. It's important to know the different types of business debt so you can make informed decisions about how to use this capital most effectively.
When you have unpaid debts that are dragging you down financially and emotionally, figuring out what to do next can feel overwhelming.
A business owner can be in a particularly difficult position when it comes to juggling business debts and personal obligations. You may be personally liable for business debts and/or your tax liability may be affected by any business debts that are not paid off.
The most common option for small businesses with debt problems is bankruptcy. But filing for bankruptcy isn't always the best solution and can have serious consequences if you're a small business owner. Before making that drastic move, the good news is that debt restructuring, and settlement are options for small companies.
Business Debt Relief allows you to eliminate the debts that your organization has accumulated while giving you the chance to continue to operate your business as usual.
What is a Business Debt Restructure?
Business Debt Restructuring – A company that has too much debt but good assets may be able to restructure its debt by asking creditors to stretch out the payments over a longer period of time. This type of plan does not change the level of payments due each month, but it does give the business more time to pay off its creditors.
What is Business Debt Settlement?
Business Debt Settlement – If a company is having trouble paying any of its debts, it may be able to negotiate a settlement with its creditors in exchange for a portion of what it owes them. The negotiated portion is often referred to as a "haircut." The creditor agrees to accept less than it is owed in exchange for getting some repayment from the company. The amount of the haircut depends on how bad the company's financial situation is and on how desperate the creditor is to get some repayment.
The biggest fear for any business owner is financial ruin. Business debt settlement and restructuring can help your business avoid bankruptcy and keep you from going under. It can also help you regain your financial footing if you are in financial ruin already. What you don't want to do is face this process alone — follow these tips to make sure your company is on the road to recovery.
Which debt relief solution is right for your business?
When it comes to business debt alternatives for small businesses, one of the most popular options is restructuring or settlement. But is it bad to take a settlement or restructure on debt? The short answer is no, especially if it helps to accomplish the goal which is getting out of debt.
There are some factors to consider before deciding which option works best for you. Such as:
Are you worried about your credit score being impacted?
Do you intend to take out more debt in the future?
Note: If you are dealing with merchant cash advance companies, they do not report to credit bureaus. Therefore, your credit score will not be impacted. If in a negative standing with these companies, the most you will find UCC filed.
A lot of times, people may think they can save time and money by handling their business debt alternatives on their own, but the reality is that smaller businesses don't have the experience that debt relief specialists do when it comes to negotiating with lenders. If they fail, they could end up paying more than they should have in terms of penalties and interest.
In order to make sure you're getting the best possible deal for your business debt; you should consult with an experienced professional. They'll be able to help you find better solutions for any type of contentious debt issues you may have—and you won't have to worry about making any costly mistakes along the way either.
Benefits of working with business debt relief specialists
Working with a debt relief specialist can
Help you to stop worrying about the stress of debt and start focusing on your business.
Take over all communications with creditors, including phone calls and letters.
This will give you back the ability to run your business without having to worry about the threats of lawsuits or garnishments.
Keep your business afloat and out of bankruptcy
Guide you on how to gain control of your finances and make smart business decisions.
Provide unbiased advice and financial guidance
Work With Us
Our team at Callee Debt Solutions truly cares about the business owners we work with. We understand the burden of being at a crossroads after so many hours of hard work and sacrifice have been made to build a successful business. Unlike other companies in our industry, we make recommendations based on what is best for each client's unique situation. We understand that one size does not fit all.
We value transparency and authenticity.
As part of our Comprehensive Debt Consultation, we provide our clients with the good, the bad, and the ugly and help them to understand how certain decisions can either help or harm their future goals. Our clients are crystal clear on each step before they are enrolled in our business debt relief program.
Time limitations prevent business owners from researching every single aspect of business debt alternatives. There’s no reason to keep struggling with your debt—find out how much you can save by communicating with a reputable debt relief specialist today! Schedule a call with our debt relief specialists at Callee Debt Solutions to find the right solution to free up your cashflow.
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