If your business is struggling with debt, it’s important to seek out professional advice and find solutions that work for your company. You’ll want to choose specialists that offer a range of options, including debt management and credit counselling, to help you create a budget and address issues with creditors. In addition, make sure to research a company’s reputation and fees before working with them. For-profit companies that promise to settle credit card debt can be costly for your company, and their services may not actually benefit you in the long run.
Enlist the Support of Your Leadership Team
A business’s leadership team can provide invaluable input into the debt management process, and having clear roles in place can help to streamline the approach. For example, the finance team may have insights into the numbers, while sales leaders can suggest strategies to increase revenue.
Assess Your Current Debt Agreements
The first step in company debt specialists is to gain a clear understanding of what you owe. This includes knowing the total amount, interest rates, repayment terms, and any penalties or fees that may apply. You should also identify whether any of your debt is secured, and the legal priority of certain debts, such as debts owed to employees or suppliers, which must be paid in the event of insolvency.
Consider Debt Management
There are many ways to manage debt, and the best option for your business will depend on a variety of factors. The most common option is to consolidate debt into a single loan or credit account with a lower interest rate. This can simplify payments and reduce your monthly outgoings, but it’s important to compare the different offerings available.
Alternatively, you could consider debt settlement, which involves a company representing you in discussions with your creditors to negotiate reduced or waived fees and lower interest rates. There are numerous companies that can help with this, but it’s essential to choose a reputable firm that is transparent about its statistics and provides information on average settlement amounts and dropout rates on their websites.
A firm like New Era Debt Solutions, for example, provides clients with a customized debt relief program that leaves them with a single monthly payment that’s appropriate for their budget. The firm also offers resources and services in Spanish, and their client reviews appear on online review sites. Other notable debt relief specialists include Pacific Debt, Inc., which specializes in helping businesses with debt relief and offers a free consultation to potential clients.