Around 90 percent of businesses fail before they even reach ten years. And in this challenging economy, it would be normal if your business would dwindle down to failure. This may lead to massive amount of business debt. There are different options you can choose from if you are deep in business debt.
The first thing you can do is actually quite easy; you can simply let go and let God. Just do nothing until your business ultimately collapse. When your creditors see this, they would be going after your assets and other valuable belongings. If they see that you ran out of assets, some creditors would simply let go of your debt. While others may sue to squeeze any asset out of you, they will still have to wait until you get a job or another steady stream of income to satisfy your balance to them.
Another option is you can file for bankruptcy. This will free you from your personal liabilities, which includes your balance to suppliers, credit card debts, lawsuit judgements, and money you own from consultants and other professionals. This might mean you have to give up the assets you own from your business and even personal assets just to pay your unsecured debt. While the bankruptcy process is ongoing, you might have to close down your business.
You can also opt to sell your business. You can sell your business for a higher price to pay off your business debt and still have extra cash. This can only happen if your business has great reputation. Otherwise, it would be close to impossible to sell your business, especially with the fact that it is losing money.
Besides all these options, you can also choose to save your business by creating a great strategy. Budget your finance down to the nitty gritty details of your business, negotiate with your creditors if you can have a more convenient payment plan, and make a ploy to increase your business income. Otherwise, you can also opt to get a debt consolidation.
