Many businesses incur overwhelming debt for various reasons and need a business turnaround strategy. Some of these business are doomed to become insolvent simply because the owners are not aware of the options available for financial recovery. This issue of BM$ Success Newsletter will show you three alternative financial methods that you can use to save your business, even if your banker has denied to extend your credit or give you a new loan. Business Money Source can assist you in any one or any combination of the three of these business turnaround financing options.
“Cash & carry” businesses such as retail shops, restaurants, dentists, auto shops, barbershops, hair & nail salons, florists, dentists and medical clinics often utilize merchant cash advances to provide working capital in off-season or during other slumps in revenue. Sometimes a merchant will take out a second cash to pay on the first and then a third or fourth and so forth. This is call “stacking”. The merchant now has debt obligations stacked on top of one another. The debt service on these outstanding loans can quickly eat up all available revenue and the demise of the business is all but inevitable. A business in this situation may close its’ doors within a matter of months if a business turnaround is not found to correct the situation.
If the business owner owns real estate and has a minimum
credit rating of 650 then it is possible to get a short-term loan secured with
the real estate as collateral. This
loan can be for up to 24 months. This
will allow you the owner, to pay off the “stacked” debts and free up your
business revenue. This recovered
business revenue can then be used to pay off the consolidation loan.
In Order For Debt Consolidation To Work:
You must have reasonably good credit rating, commercial or
residential real estate that is equal to or exceeds the value of the loan
amount and cash flow that can support the debt service of the loan. Companies with a current bankruptcy or
judgment will not qualify for a debt consolidation or a business loan. The Debt Consolidation loan program is only
available to businesses in the U.S.A. and Canada.
What happens if your company is so overburden with debt
that your revenue cannot support a debt consolidation loan? What if your company is on the verge of
filing Chapter 11 bankruptcy or closing your doors for good? There is still a business turnaround option.
You can restructure your company’s debt by negotiating with your creditors. Why would creditors be willing to work with you? Your creditors know that if you go out of business or go into bankruptcy, they may receive only pennies on the dollar of what you owe them. It is better for them to help you pay your debts by extending the loan term or reducing the principal that you owe or both. This is a solution that can save your business by freeing up your cash flow with a debt-restructuring plan designed specifically for your business situation. However, this can be a complicated task that will require professional debt specialists to ensure a successful outcome.
Business Money Source is working with a third party debt
restructuring company that has saved over 10,000 businesses over the past 20
years! Learn more and get started now to restructure your company debt! This method of business turnaround is more complicated than consolidating debt and may take several months to complete but the results will be well worth the effort.
In Order For Debt Restructuring To Work:
You company cannot be in Chapter 11 bankruptcy. Your business must still be currently active and producing revenue or have contracts in place that will produce sufficient revenue. You must list all of your creditors and accurate amounts of what is owed to each one, the amount you are currently paying each debt.
The debt restructuring specialists will determine the amount that you can pay your creditors each month and still remain in business. Then they will approach your creditors and negotiate a repayment plan for you that will allow your business to return to profitability.
Start your business debt-restructuring program today by clicking on the link here.
Even if your business has gone beyond where debt consolidation and debt restructuring are no longer viable and you have filed for Chapter 11 bankruptcy protection, there is still a business turnaround to save your company. You may be able to get Debtor-In-Possession financing to reverse course and return your business to profitability.
The term “Debtor-in-Possession” refers to the fact
that the current management and board of directors remain “in possession” of
the business following its’ Chapter 11 bankruptcy filing. Many business owners do not know that there
is a way to get financing even if they have declared bankruptcy.
You are probably wondering why a lender will lend
working capital to a business that is already in Chapter 11 bankruptcy. Some lenders see Debtor-in-Possession
financing as a relatively safe loan opportunity because U.S bankruptcy law
protects DIP creditors. Business
bankruptcy loan payments are placed in 1st position over all other
loans by law. This means the DIP lender
will receive loan repayment before any other creditors.
In Order For DIP Financing To Work:
You begin the process of DIP
financing by finding a lender who will work with companies that are in Chapter
11 bankruptcy. This is where your
business should seek the assistance of a business-funding consultant like
Business Money Source, LLC. Business
Money Source has access to several funding sources that make DIP Loans.
You must also receive
the approval of your other creditors.
Your other creditors may object to the new loan if they feel that the
new DIP loan will reduce their chances of getting repaid. The Bankruptcy Court will also have to 1)
approve the DIP loan, 2) insure that the collateral will be sufficient to
secure the loan and 3) approve your budget and loan repayment schedule. The objective of obtaining a DIP loan is to
finance reorganization of your company and to turn it around from a failing to
a profitable enterprise. If this cannot
be accomplished, the DIP lender may be able to finance the process of selling
Apply for Debt-In-Possession financing by filling out the
short secure form here.
If you company is experiencing financial distress there are alternative
methods to consolidate debt, restructure debt or reorganize your company. You should consult experienced legal counsel
and financial turnaround specialists when utilizing either or a combination of
these funding methods to restore your business to profitability. You can begin the process to save your
business by going to one of the links in this newsletter and filling out the short
form. Business Money Source and its’ funding sources will work with you through
the business turnaround process to realign your business finances and save your business.
Return to Business Money Source Homepage.
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