Facing a Business Debt? Here are 4 Things that You can Do
The present times have further added to the inconvenience of unpaid debts, big time. Many businesses around the world are either facing the problem of unpaid debts invoices. At such times of crisis, one does wish for any security measure that will help sort out the matter but there isn’t any. However, there are debt recovery services.
A debt recovery agency or commercial collection agency will be able to help you out in both cases, whether it is for collecting debts or clearing debts (planning only). Here, we shall be talking about the things that you can do when faced with business debt. Each of these will help you in handling debts professionally and efficiently.
Here are 4 things that you can do when faced with business debts:
- Know the Structure of Your Company: This can go two ways. If the business has a sole proprietor, he or she is responsible for the debts, while partners in partnerships have personal liability. This means that the creditor can make a run for your personal assets for debt clearance.
On the other hand, if a business is established as a corporation, personal liability is taken care of. However, if you try to clear the personal expenses using the business funds, your creditors may try to seek the debts from your shareholders. To avoid this, agencies of credit collection services encourage businesses to include a personal guaranty in the credit application.
- Clear your debt or reduce it: Although it sounds much easier than how it is in real life, consolidating loans, payment plans, crowd funding, and negotiating discounts, are all potential ways in which you can have fruitful possibilities. It is very important for you to make sure that all your clients have cleared your debts before you yourself go for loans. If you are facing trouble recovering your debts, contact a collection agency. They make use of many updated methods to recover the debts in less time.
- Declare Yourself Bankrupt: If you are unable to clear your debts or facing unpaid debt charges from a commercial collection agency, you can declare yourself bankrupt. In this way, it is up to the court to decide how much money each creditor will receive. However, a company has to have a working capital to survive the bankruptcy process. So, before declaring yourself as bankrupt, always consult a debt collection professional to know the most likely outcomes.
- Get Sued: This may sound like a terrible idea but it will nevertheless give you more time to turn things around. As the last resort, this doesn’t sound that terrible after all. All that this option allows you to have is more time. However, there are some things that you need to know about suing. Once, your creditor sues you, with the help of a commercial collection agency, they get a lien. They can make use of this lien to go for a bank levy which is a process to freeze your bank accounts. The money in the account can then be used to clear the debts. So, if you don’t want yourself to arrive at this situation, negotiating with your creditors is the next best option.
It is only normal to feel overwhelmed when your business faces such a crisis of debt. After all, you have built it brick by brick. A lot of time and money have gone into it to even think of shutting it down. However, remember that you are bigger than your business and not everything your business is facing is your fault. Understanding the different options to control your debts with the help of a commercial collection agency will help you a lot.
Keywords: Commercial Collection Agency, Collection Agency, Credit Collection Services, Debt Recovery Services