Facing debts of your business, Let’s fix this
You thought everything was going well in your company; customers came and tasks are met within the specified periods. However, something unexpected happened: a couple of clients failed in their pay, which destabilized the tight finances of a project that has just begun. You started receiving frequent calls from creditors, the inability to clear all your debts and gradually your economy is destabilized. What to do in this case?
According to experts in this field, the best thing to do in these cases, cope and call your creditors exposing them to your situation. They will no doubt be willing to refinance your debt or perhaps offer you to change the interest rate and thus allow no more about incurring costs. But be careful when doing so.
Many entrepreneurs are driven by stress and end up worsening the situation and increasing debt. Instead, what you should do is: – Do not show that you are frustrated and angry, but be willing to collaborate. At the end of the day, they collect what is expected.
Bring a list of your total debt. Divide them as per their importance high to low so that you have a clear picture of which debt needs to be cleared first. You should also do an analysis of those creditors to negotiate harder and approach them first.
Have you all your financial records. It will help you have more control of your finances and to understand how much time and how you can solve your debts.
The collector probably gives you some useful ideas. Maybe you can find new funding or strategies to reduce your costs. If you had a problem with one of your collectors, see the possibility of talking with another person.
Another option is to seek a “credit counseling.” It can be very useful sometimes as consulting firms can help you take control of debt and build a stronger financial structure. They will check your total debt and your income and will help prepare a reasonable personal budget. They also negotiate with your creditors to reduce payments on your bills.
Now, you should plan future expenses. Bankruptcy is the last option you should raise, it gives you the chance to end the debts under court receivership. Finally, remember that creditors should not harass.