The recent economic climate has been particularly cruel to small business owners. Faced with decreased sales/profit margins and slow paying customers many business owners have fallen behind in payments to their creditors that give rise to commercial debt. This includes suppliers, banks, landlords, etc. Faced with mounting debt the owner may contemplate filing bankruptcy.
A viable alternative to bankruptcy is commercial debt settlement in which the creditor will accept a reduced payment from the original balance which is owed. In many cases, in addition to having the creditor take a reduced payment the payment may be spread over several months.
When Creditors become frustrated they are unable to collect and realize that pursuing costly litigation may yield nothing they are likely to settle. If a creditor is convinced that the business may be on the verge of bankruptcy the creditors are willing to settle and recoup a portion of their funds.
Commercial debt settlement should always be explored by business owners as an alternative to filing bankruptcy. As opposed to Bankruptcy in which the owner is now being controlled by a trustee in commercial debt settlement the owner is in control. The business owner has the ability to pick and chose which creditor they would like to approach to for settlement.
The owner has the option to continue to pay his key supplier and not jeopardize that relationship. Commercial debt settlement allows the business owner the opportunity to prioritize urgent debts and this gives rise to commercial debt forgiveness.
Business Advisory Center has been providing solutions to Small Business for Debt Relief since 1997. Our principals Dennis Keane and Robert Schoenberg are involved in every settlement negotiation. We can be reached via email at firstname.lastname@example.org