I am a business owner and I am having difficulty paying my bills what should I do?
An owner has multiple options, available which will answer the above question.
The first question, Is this business viable? Many owners refuse to address this question and continue to invest time, money and energy into a company or industry that is dying. If your heart is no longer in the business or making a real time turnaround is impractical the best thing to do may be to shut the doors. I do realize that this may sound terrifying or even over the top but why climb deeper into debt. It may be time to abandon, ship.
If you have made the decision to forge ahead please take a detailed look at every line and item on your income statement to evaluate why the business is not generating enough cash to pay your bills on a timely basis. If you are convinced you can make a success of it by choosing wisely .You can go into two totally different directions. One direction is to raise money or the other direction is to reduce your debt.
Raising money could be as simple as asking friends or family for money. It could be as complex as trying to get an SBA loan or re-financing your house. The biggest problem with raising cash by borrowing money from a financial institute is that normally when you have trouble paying your bills is that your credit rating is usually so bad that a bank will never lend you the money.
The other direction is that your company can go ahead with reducing your debt. I am not just talking about bank loans and credit cards I am talking about reducing the amount of money owed to your supplier.
This can be done in two different ways. The most well known option is to file for bankruptcy. In bankruptcy the court system will allow you to reduce or eliminate many debts. The problem with this option is that your company will have to pay an attorney great deal of money.
Costs can range from $20,000 to $100,000. In addition, your business will be operating under court supervision with restrictions as to how you will spend your money, the other option, is business debt relief also, known as business debt reduction. Business debt relief allows you to pick and chose who you will try to obtain a deduction from. You will be in control of your own destiny. In many cases you will be able to avoid hiring a lawyer.
Business Advisory Center has been helping small business owners since 1997 reduce their debt and improve cash flow.
Our company typically obtains reductions of between 20 to 50 percent: with payment terms between 3 to 12 months on the reduced balance. If you find yourself in the position of not being able to pay your bills and have creditors calling on a daily basis asking for money please contact us for a complimentary evaluation, we can be reached at email@example.com