|
When Debt is Too High
Your business debt is too high if any of the following are present:
-
You are making your debt loan payments each month and are able to fund the day-to-day operations of the business but have no excess cash to grow and develop that business as your competitors seem to be doing.
-
You are making your debt loan payments each month but have had to cut regular expenses and perhaps let some staff go, assuming those responsibilities yourself.
-
You are late with your monthly debt loan payments, and your business plan is not longer relevant.
When in this situation, you should know that non profit bill consolidation helps you.
The Non Profit Consolidation Option
Tread cautiously into the ocean of debt consolidators who advertise, especially those that claim to be non profit. Many are not, and their fees can be much more than some consolidators that are admittedly for profit. Many consolidators who advertise for personal consolidation will assist small business owners as well, but it will be important to check their credentials, their success record and their references. As well, you will need to check the references you have asked for and be certain that there are no complaints filed with consumer organizations.
The National Credit Counseling Association can provide a list of consolidation firms that assist businesses. These organizations should be willing to thoroughly analyze your businesses, your financials, and your budget to determine what options you may or may have for loan consolidation. If they are able to assist you with consolidation, be certain that part of the process involves negotiating with your creditors for lower interest rates and elimination of late fees. Most creditors will be willing to negotiate if they know you are serious about getting your debt paid responsibly.
The Small Business Administration is also an excellent source of information for financial services to businesses. They can point a business owner in the right direction and put him/her in contact with organizations that are both reputable and responsible about the charging of fees. There may be grants available to existing businesses for the purposes of paying off existing debt. Do not leave any stone unturned as you seek consolidation assistance.
Any good organization will assist you in the revision of your business plan and the development of goals that are realistic and appropriate for you. They will provide follow-up counseling and advice as well, so that you adhere to the new plan and reach your goals.
|
|
|
|
|
