It is not easy building a successful business, especially in an economy that is not as strong as it once was. In many situations, a business owner will continue doing what they think is right, only to find all too soon that their debt has suddenly grown to the point where bankruptcy may be an unavoidable reality.
Your dream of owning your own business does not have to end in bankruptcy court. There are options other than bankruptcy available if you catch and address the important issues early enough. One of the most proven is restructuring your business debt.
Researching Debt Restructuring Companies
If trying to get control of your business debt has you overwhelmed, then you may want to seek the help of a professional debt restructuring company in your area. Before you do, however, it is very important for you to research the company to ensure the one you are interested in is legitimate.
Contact the Better Business Bureau to find out if the company’s counselors are licensed by the American Board of Certification or if any of their previous clients filed any complaints against them. Research several different companies before settling on one to handle your debt restructuring plan.
Even after you sign on with a debt restructuring company, it is important to stay on top of things. Continually check to make sure the creditors are receiving their payments when they are supposed to. If they are not, then immediately change debt restructuring companies.
Exchange Debt for Creditor Equity
In some circumstances, a business owner may be able to give a creditor a certain amount of equity in their company in exchange for a portion of the debt being relieved. One does have to be careful in determining how much equity to exchange, however, as you do not want the creditor to assume majority control of the business.
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