How to Negotiate Your Business Debt
No businessperson ever wants to be forced to admit defeat and have to declare bankruptcy Yet in the current economic climate, more and more business owners are having to do just thatNo businessperson ever wants to be forced to admit defeat and have to declare bankruptcy. Yet in the current economic climate, more and more business owners are having to do just that. If your business is currently facing mounting debt problems that seem inescapable, it may seem like there?s no hope. Your profit margins keep shrinking while your bills keep piling up and creditors are calling nonstop. What can you do in this situation? One option is to try and negotiate your business debts.
There are two ways to go about this. You can either try to perform your own business debt negotiation, or you can hire a corporate debt negotiation service that will negotiate with creditors on your behalf. The first option may sound more appealing ? and cheaper ? but it may not be as easy as it sounds. Creditors can be pretty tough to deal with. After all, they don?t want to lose out on the money they?ve lent to your business.
If you want to try and go the do-it-yourself route, then here is how you get started. The first thing to know is that you should strive to be honest with your creditors. Trying to get a business debt reduction after you?ve continually lied to your creditors about your financials is probably not going to end well for you. You want to be up front and honest, even though it can be embarrassing to admit that you?ve bit off more than you can chew. Ultimately, most of the time they will appreciate your candor and be more willing to work with you, at least for a time.
Next, you want to try and suggest a business debt negotiation agreement that is amicable to both parties. That means that your creditors get their money, and you keep your business on its feet long enough to start being profitable again. You may be able to convince them to lower your payments or settle your debt for a smaller amount if you can present compelling evidence that you can turn your profitability around. Basically, the logic is that if they keep hounding you, your business will continue to fail and they?ll never get paid. Try and convince them that by helping you out, they increase their chances of getting paid in the long run.
That may sound simple, but it?s really recommended that you work with debt consulting services when dealing with creditors. While they do charge a fee, they are often able to get you much better deals than you could get on your own, since they are skilled in negotiation and understand the needs of both your business and your creditors. They can also help you work out a cash-flow plan that can keep your business growing even as you work your way out of debt. Contracting a business debt negotiation firm is often your best chance at getting out of debt without declaring bankruptcy or losing the business you?ve worked so hard to build.
Eric Kaplan has been involved in the business debt reduction industry for over 25 years and has helped thousands with their business debt negotiation. His first recommendation is to find a reputable, debt consulting firm with references and proven results.