Small businesses go bankrupt. The Small Business Administration states that 50% of businesses survive past the five-year mark. This means half of the entrepreneurs that follow their dreams and start their own businesses will see their dreams go up in flames.
Business is a risk, and one late shipment or one lost contract can mean the difference between a business thriving or boarding up their windows.
There are options outside of bankruptcy that can stop a business from dissolving.
1. Direct Negotiating Outside of Court
Lenders will negotiate with a business outside of court. When negotiations take place away from the stringent requirements of the court, there are a plethora of benefits, such as:
- Avoiding court proceedings, which allows a business to save money
- Direct negotiations take far less time to complete
- A plan to get back on a financial track will be drafted, and will work for all involved parties.