Q & A for businesses in debt




Q & A for businesses in debt


Encouraging news for small organizations who want to pay their creditors, but cannot because of poor cash flow, may be found in these frequently asked questions about debt restructuring.


The answers were supplied by experts at Commercial Credit Counseling Services, an organization whose goal is to develop a plan that debtors can afford and creditors will accept.


Q. Why should I restructure my debts?


A. To avoid the pain and costs associated with bankruptcy and litigation and to stop the harassment from creditors, collection agencies and attorneys. Debt restructuring will help you satisfy your creditors with an affordable monthly payment and let you focus on business development, rather than putting out fires.


Q. Under what conditions is debt restructuring most effective?


A. When you are being sued or when a secured creditor is contemplating foreclosure because of your financial condition. It is also an effective response when you’re unable to get the financing necessary to pay creditors.


Q. How can you settle so much debt for such low monthly payments?


A. The key to success lies in the budgeting of payments. Creditors are offered several settlement options. The smaller the settlement, the quicker they’ll be paid. The more they want, the longer the payout.


No matter which option creditors accept, you win because all settlements are within your budget.



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