Commercial debt reduction is the process undergo to reduce or repay their outstanding debt. Some have high debt as a result of over-leveraging assets to increase production facilities, buy competitors, or purchase businesses with existing high debt levels. Our business debt relief lawyers discuss options are available to companies trying to reduce their commercial debt.
Overseeing External Cash Flow
Companies may reduce their commercial by stopping all borrowing and focus on using available cash to reduce current debt. A debt management report may be compiled, outlining how they will adjust their budget to repay debt quickly. Debt management plans can include ways to hike up sales, eliminate unnecessary expenses, and find areas that are sucking up cash resources. Depending on the debt size, companies can have debt management plans can last from one to five years long.
Debt consolidation is the process companies use to take several outstanding debt balances and combine them into one loan with a single and most likely lower interest rate.Companies can focus on paying back the principal amount and not worry about the interest.
Companies with large amounts of debt can seek out the services of debt counselor to help them understand their debt and find ways to repay the debt without interfering with the day-to-day activities of the organization. Keep in mind that debt counselors do not help the companies repay debt; they simply provide a debt management plan.
Chapter 11 Bankruptcy
When companies have unmanageable cash flow issues, they can enter a Chapter 11 reorganization bankruptcy. All filers have to submit a reorganization plan indicating how future funds will be utilized to pay bak debt. Filing a Chapter 11 bankruptcy can be lengthy and complicated. As such, it is recommended to hire an experienced bankruptcy lawyer to handle your case. The business debt relief lawyers at Shipkevich PLLC have helped many business reorganize their debt. If bankruptcy is not the best debt relief route, we can also assist with:
- Merchant Cash Advances
- SBA Loans
- Small Business Debt
- Merchant Cash Advance Lawsuits
- Confession of Judgments