Get Debt Relief for Your Small Business
Are you contemplating the idea of declaring your small business bankrupt? Well, there are other debt management solutions available to handle your debt situation.
Impact of Recession on Small Businesses
The recent economical recession has had a tough impact on small businesses. As most businesses take unsecured loans, when they aren’t able to pay the accumulating debt and the high interest rates, they opt for bankruptcy. However, bankruptcy can have its own share of repercussions and hence should be the last resort to be debt-free. Just because you are unable to pay off your debt, you can’t lose all the goodwill you have worked so hard to earn with your business. In such a scenario, debt management solutions offer many strategies to handle your small business’s debt issues.
Debt Management Plan
Under a debt management plan, debt experts usually bargain with your creditors to reduce the debt amount in a certain clause so that the payable amount will be lower than the current debt amount. It’s a legal procedure in which your creditors enter into a new agreement with you. Thanks to debt negotiation, you can eliminate up to 60% of your unsecured debt.
Debt Settlement
Debt settlement is a very good debt management plan for small business owners who have more than $10K in unsecured debt. Unsecured debt creditors are apprehensive about collecting their delinquent accounts, so debt analysts take advantage of this through negotiation and settlement.
Relief Network
Debt management analysts often suggest a liability relief network for small business debt settlement. In fact, it’s considered a better choice than settlement companies. This network only enlists effective debt management companies with a successful track record. Hence, small business owners can expect some significant developments in their quest toward being debt-free.
Here are some dos and don’ts for small business owners:
- Debt management planners strongly suggest not opting to borrow to repay your current debt. If you already feel the heat of debt, further borrowing will only add to your unsecured debt.
- Be punctual in your tax payment. Debt management planners prepare charts to help you maintain your tax details. Remember, even one tax non-payment can earn you an asset penalty from the Revenue Department.
- Maintain a separate bank account. In this way, you can save a compensatory amount from your creditors in case of a drastic situation like bankruptcy.
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