Small Business Debt Relief: How You Can Find a Small Amount of Relief
When your business is significantly affected by debts—both business and personal-related—you need to work on resolving the issue fast before it starts to really affect your company, especially if it happens to be your primary passion and income in life. You have to keep it afloat, otherwise, all your effort and hard work that you put into it would just be put to waste. Besides, there’s always room for improvement and redemption.
In this case, you’re in dire need of small business debt relief. In acquiring debt relief, you have to consider highly that you need to give your business a second chance and look at re-structuring everything. This is for you to give your business the opportunity to thrive again with a better financial plan covering it. Take note of these pointers on what you need to know about small business debt relief:
Pointer 1 – Re-Structure Your Budget Plan
Before heading to a lender to help you revive your business, think of things that could optimize or weaken your business budget plan before you resort to a business debt relief strategy. In this context, look into the following aspects:
a. Remove Unnecessary Expenses
If you happen to identify which expenditures cause your business to lose a lot of cash on a daily or monthly basis, then get rid of it or adjust it accordingly. This can help improve cash inflow and might settle some debts without the need of a debt relief plan.
b. Increase Product/Service Price
Study which of your products/services can be charged with higher prices. But make sure they’re kept competitive in the specific market where they belong to. This will help you to maintain your potential customers without chasing them off with higher than average prices. This can help increase your revenue that can be used to settle your debts.
Pointer 2 – Re-Visit Your Terms with Creditors, Suppliers and Trade Partners
There’s no harm in trying to negotiate with your creditors, suppliers and trade partners to see if they can change the payment schedules for you. Changing payment schedules can give you some breathing room and can help you to organize a new payment schedule that is better suited to your needs.
Aside from this, you can ask if you can change the payment term from 30 to 60 days. You can even ask your creditors for a longer repayment term or lower interest rates. As long as your negotiation would lead to a win-win situation, then there’s no reason to fret too much. What you need is to tell them the truth of your situation up front.
Pointer 3 – Debt Relief Options
If you have exhausted all your means to improve your business cash inflow and you still end up piling up your debts, then you can choose to seek other forms of debt relief. Pacific Debt Relief is a great choice but here are additional viable options as well:
a. SBA Loans
For small business owners who seek debt relief, this one happens to be a popular choice. They offer the most affordable means for debt relief as they provide the most extended repayment terms and lowest interest rates. Just so you know, on the one hand, this kind of loan involves so much paperwork and requirements, and may take almost three months before refinancing can begin. But it’s worth the shot.
b. Alternative Term Loans
Just like SBA Loans, alternative term loans also offer the lowest interest rates and repayment terms that could run up to 5 years. Compared with SBA Loans, this kind of loan has minimal requirements and a much shorter period for the refinancing to begin.
c. Able Lending
This is another form of refinancing that leverages on the support of family, friends and other backers who would earn interest from the money lent to you. What this type of lending does is that it raises a portion of your loan from those people. In other words, they would be your co-makers. The more co-makers you have, the more faith is given to you through able lending which offers lower interest rates and has a longer repayment term than other loan providers.
If you still have so many options left to relieve your small business from debt, then you should try them and find out which of these work to your advantage. As much as possible, pay your debts by increasing your cash inflow in many ways before seeking for financial help from a loan provider. As they say, there are risks associated with setting up a small business. With that being said, take risks to overhaul your business game plan and improve further your cash-generating mechanisms to sustain the power of your business. Filing bankruptcy should be the last and the least of the risks that you need to fix your debt problems with. Are you ready to turn your business debt around?