Business debt relief strategies are designed to help a company get back on track and prevent bankruptcy. In this article, you’ll learn about UCC Article 9, which offers a streamlined option for businesses in financial distress to eliminate unsupportable debt, preserve operations and jobs, and avoid bankruptcy when it is unlikely to save the business.
Whether it is to boost cash flow, purchase inventory or equipment or pay for services and supplies, most small businesses use borrowed money at some point in their growth process. While it isn’t always a bad thing, many companies end up with a lot of debt that they may not be able to repay. This can be particularly dangerous for new or struggling businesses, which are more likely to rely on debt to help them grow.
The good news is that there are several ways to relieve business debt, including debt consolidation loans and credit card debt settlement. In this article, we’ll explore these options as well as other techniques that can be used to help businesses manage their debt and recover from excessive borrowing.
In addition to using a business debt consolidation loan, a business debt relief can also try cutting costs and paying with cash to reduce the amount of business debt it has. Depending on the needs of each individual business, some cost-cutting measures might be more effective than others. Regardless, a business should work with a qualified financial specialist to make sure that they are taking advantage of all available savings opportunities.
If a business can’t cut costs enough to make a dent in its debt, it might need to look into other financing options. In this case, a debt relief expert might be able to help the business find a lender that is willing to provide a small business debt consolidation loan. If approved, the loan will typically be funded within a few days and will be paid directly to creditors to pay off existing debts. The business will then have a single monthly payment to make instead of multiple payments each month for its existing debts.
Lastly, the business should look into grant programs that are available to assist with debt repayment. There are often grants available that support specific geographic regions or industry segments, so it is important to thoroughly research all the funding options that are available. It is also possible that the business may be eligible for a 7(a) loan program or 504 loan program from the Small Business Administration, which have relatively straightforward qualifying criteria and application processes and offer compelling rates. These are typically serviced via local lenders, while the SBA