POSTS TAGGED : bankruptcy alternatives

6 Bottom Line Tips to Avoid Business Bankruptcy

When first starting your business, you probably never dreamed of dealing with the challenges of paying off large amounts of business debt. Researching the market and creating a powerful business plan was supposed to be sufficient to raise capital.

Capital for launching your business is usually the catalyst for overlooking debts. Unfortunately, business is like life, unpredictable and full of twists and turns. According to a U.S. Bank analyst report, 82 percent of businesses fail due to money issues.

Facing bankruptcy

Remember, cash flow doesn’t always equate to money coming in and out. Timing should also be taken account. If your business is based on having an invoice system, your invoices won’t be paid until after the loan payments are due.…

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3 Alternatives to Bankruptcy for Small Businesses

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.

Bankruptcy

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.
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