Consolidating business credit card debt methods of absolute dating
Contact every creditor, and advise them of your predicament.Ignoring your lenders can only make matters worse, while tackling a debt problem is easier when you act early.Taking on the right amount of debt – and at the right time – can mean the difference between a business that struggles and one that succeeds. For most businesses, borrowing makes sense when it is necessary to bolster cash flow or finance growth or expansion.Yet, due to the Great Recession, the last few years have been particularly difficult for small businesses that overextended themselves by borrowing too much money without the capacity to make back what they owe.The loan may be unsecured or secured with business assets.As a last resort, a Chapter 11 bankruptcy is a route you can take to salvage a company, especially if the business’s debt challenges are temporary and the company is otherwise viable.
When you're choosing the term of a loan, consider the total amount of interest and fees you’ll pay.
If you cannot bail out your business with private funds, you need to identify areas where you can reduce costs.
Perhaps you can sublease unused space or sell off unused equipment.
Since it’s in everyone’s interest to find a solution, request that your lenders work with you to lower interest rates, increase your credit line or restructure your repayment options.
If dealing with multiple creditors or collection agencies is taking you away from the more important task of running your business, you can outsource your debt problems to a professional debt-relief company.