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    Debt Relief Options That You Never Thought Existed

    It is not unusual that you are staring at a growing debt status in your company. The situation gets worse when you recall how difficult it is to secure credit. You need not worry as you are not the only one struggling.

    Many companies are now experiencing drops in sales. Plans for expanding into other potential markets hit a snag. Customers start delaying payment of their dues. While this scenario builds up, lenders are piling pressure.


    Irrespective of the gloomy situation, you need not give up. The business has a chance of getting out on the other end. Your desire to remain in business is what influences the strategies you implement. The extent of your liability also comes into play.

    For a limited liability company, where you are not personally liable for the firm’s debts, you have some reprieve. The business should pay its debts. No creditor will come seeking to seize your car or home. Moreover, they cannot hold your bank account to ransom.

    On the contrary, such lenders seek repayment from the business. In the eyes of the law, your company is like a person. Its existence is separate from yours. Company debt relief can take numerous forms. 

    The initiative to pay

    You could try taking the bold step of planning how to pay off outstanding debt. One of the benefits of doing this is that you do not have to hire someone for assistance. Also, all your efforts focus on mobilizing funds. 

    ·         Prepare a plan detailing how much you owe

    ·         Open a simple spreadsheet with separate columns for:

    i)                    The creditor’s name
    ii)                   Outstanding amount
    iii)                 Projected payment
    iv)                 Date due

    Fill the columns up and get a head start on your present status. Call your lenders and explain the situation. Have some documents ready to act as proof of your hardship.

    Counseling

    Find a credit counseling agency and discuss your finances with them. Majority of these organizations do not charge any fees. At the end of a discussion, your counselor will recommend a raft of measures. Chief among these is a plan to manage debt.

    The financial expert helps you determine what you can afford to pay. They then speak to lenders and seek for lower repayment amounts. They can also push for an extension of the credit period. Another option would be to get the creditors to reduce their interest rates.

    Settlement

    Under this option, you may engage a debt relief firm. The company then proceeds to speak with creditors. They convince them to accept a lump sum payment in return for the cancellation of a portion of what you owe.

    Most entrepreneurs panic whenever their businesses show signs of a financial struggle. You are not the only one. By striking a deal with lenders, you could end up making lower monthly payments. In some cases, lenders can give you a timeout of a few months. 

    These options help in buying you time. During the relief period, you can reorganize your finances and pool resources to enable you to catch up on missed payments.

    Bio:

    Trudy Seeger is a business credit advisor. He believes that businesses may encounter challenges in keeping up with debt repayment. This is where company debt relief organizations step in to assist. Negotiating with creditors always helps.

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