There are many crucial factors that lead to the failure of a business and debt is certainly one such factor that adversely impacts the financial health and growth of a company. Very few things could kill businesses with such speed and intensity as debt. Debt is supposed to be a vicious cycle that several owners are encountering and they are struggling to get out of the trap. As per the Gallup poll, it was reported that more than one-third of the American small business owners are experiencing the stress due to the debt burden. As per the study findings revealed by Experian, the small business owner in the United States has debts of as much as $195,000 on an average. As per a specific Gallup poll as discussed on https://www.infusionsoft.com, around 36% of small business owners in the United States who have already taken out loans are very uneasy about their debt burden. The poll revealed that 49% of small business owners who have taken out loans admit that it is really quite tough to pay back all their current debts.
As per the findings of a United States Bank study, a phenomenal 82 percent of the small businesses fail to establish themselves as they face cash flow issues. In this context, you must know that according to a survey by NSBA, 27 percent of the small businesses surveyed by the agency actually did not get the required funding.
The Role of a Debt Settlement Company
A reliable business debt settlement company would be helping businesses drowning in immense debts by showing them how to get out of the debt trap. However, it could be pretty challenging to identify the right debt settlement company for your individual requirements. Business debt settlement firms are acting on behalf of you and your business, negotiating effectively with your creditors for reducing the owed amount by you. It is, therefore, of prime importance to identify a trustworthy debt settlement company that would be working sincerely for getting you the best possible deal.
According to huffingtonpost.com, debt settlement firms would be approaching your creditors and would go about negotiating a deal in which all the creditors would accept less than the actual amount owed by your business for an agreed lump sum payment. Upon payment of the specified lump sum, the creditors would be canceling your debts. Once an agreement is signed, a business owner would be paying a specified monthly amount directly to a specific special deposit account that has been set up via the debt settlement agency. You would be required to pay fees for the services of the debt settlement firm. Once the amount in the deposit account goes up to the level that your creditors had agreed before to settle your account, the debt settlement agency or firm would be paying the creditor thus, eliminating the debt you owed as a business owner.
So a competent debt settlement company would be negotiating successfully with all your business’ creditors. Right from the start they would be clearly stating the fact that you would not be able to pay off the entire amount owed by you and that you are looking for a compromise. A reliable debt settlement company would be working hard to make sure that all your personal assets are actually safeguarded and your limping business would be getting an effective debt relief required for carrying on trading and getting back gradually on the road to success.
Identify the Right Debt Settlement Company
It is a challenging task to identify the right debt settlement company as there are a host of services vying for your attention. Some companies would be specializing in business or corporate debt while some others would be specialists in personal debt. As a solution to your business debt, you must get in touch with a debt settlement company that has a wide experience in corporate or business debt and are specialists precisely in business debt settlement.
Consider Accreditation, Fees, and Services
While choosing the best debt settlement company that should work best for your business’s requirements, you must understand clearly about the consultation charges, or if there are any upfront fees etc. You must do a thorough background check. Examine if the company is accredited by the well-known AFCC or the American Fair Credit Council or is it affiliated to the IAPDA or the International Association of Professional Debt Arbitrators? Examine if the company is willing to go that extra mile for you. Will it offer personalized services?
Examine the Reviews and Past Success
A debt settlement company with an excellent track record would mean they are trustworthy and competent and are good in what they do. You may rest assured to get high-quality services and desired results. You may go through customer complaints and debt settlement reviews online as they would demonstrate how competent and successful a particular debt settlement company is in its mission. You could go through some studies related to amazing previous debt settlement cases that clearly demonstrate the brilliant balance, the actual debt reduction, and also, the final settlement. If possible arrange to meet the previous clients of a debt settlement company to get a firsthand review and go about verifying the validity and authenticity of all the claims made so far by the company. This way you could get a clear idea of whether it is practical for you to hire the services of a particular debt settlement company.
Examine the Credentials of the Negotiators
You need to rely on experienced, qualified, and expert negotiators if you wish to pursue a debt settlement plan that would prove advantageous to you and your business. Obviously, you want an expert negotiator to handle your case and fetch you the best possible deals. You would certainly stay away from untrained, inexperienced, and a novice agent who lacks relevant and adequate legal knowledge to take your business forward to the next level smoothly. Find a debt settlement firm that employs the services of only well-trained and experienced negotiators.
Use Free Consultations Cleverly to Your Advantage
Several top-rated debt settlement firms would be offering a free consultation. This could be a golden opportunity for your organization to learn more about the debt settlement company. You may avail free advice. The reliable and competent debt settlement companies would be working toward generating an effective budget and implementation of effective ways of your business reducing debts and saving debts at once.
Choosing the right debt settlement company for resolving your business debt issues could be a pretty daunting task as there are a plethora of such companies that make tall promises and ultimately do not deliver as per expectations. Moreover, you get to come across several stories of fly-by-night firms and scammers that do not help in resolving your debt issues but take away your money. It is, therefore, important to consider all the important factors discussed so that you could make the right choice.