In today’s economy, it has become more and more difficult to manage the day-to-day operations of your company without taking on extra debt. This could come in the form of vendor or supplier loans, or perhaps you even took out a loan or two with your local bank. No matter how you became indebted, it’s important to understand how you can get out of debt and how to avoid becoming further indebted in the future. With that in mind, here are seven solutions your company needs to make debt manageable once again.
Asset-based lending: If you have an asset or assets (such as inventory, equipment, real estate) that a lender can repossess in the event of default on the loan, then you may qualify for this type of loan. The downside is that interest rates are usually higher than other types of loans, and lenders tend to require larger down payments. It's also important to note that your credit rating will determine whether or not you're eligible for such a loan.
Your employees might not be aware of how to manage their finances, and they may not know what's best for them. We recommend that you provide your employees with debit cards to help them save money and protect themselves from the risk of identity theft. You can also use these cards as a method of payroll distribution, giving your employees instant access to their wages without having to wait until the end of the pay period.
Many companies and employees have not had to file for bankruptcy, but if you find yourself in a situation where declaring bankruptcy is your best option, you're not alone. Take some time to consider the various debt solutions that are available to you before making a final decision.
If you're looking for a way to get out of debt, credit cards may not be the answer. Credit cards are one of the most expensive and time-consuming ways to pay off your debts. If you use your credit card responsibly and pay it off monthly, you will be able to avoid interest charges. Otherwise, you'll be stuck with a high-interest rate that can make it even harder to pay back your balance.
One of the most important ways to reduce your company's debt burden is through a repayment plan. The more flexible the payment plan, the more likely you'll be able to make it work with your company's budget. A single monthly instalment will be easier for some companies than a quarterly payment plan, and vice versa.
In a cash advance, the company lends you a specific amount of money and charges an interest rate on the amount you borrow. It's not difficult to get approved for this type of loan, because there are no credit checks needed. However, this loan is short term and should only be used in emergencies.
Bill Consolidation and Refinance Options
If you're struggling to make your monthly payments, there are a few options available to help you get back on track. With debt consolidation and refinance options, you'll be able to combine your debts into one low monthly payment or refinance them so they're less expensive.
Forgiveness Programs or Cancellations
Forgiveness programs and cancellations are two types of debt solutions that many companies offer. It allows the company to forgive a portion or all of a debt as long as the debtor meets certain criteria such as making an on-time payment over a set period of time or meeting other requirements. Cancellations are done when the company determines it is no longer able to collect on a specific debt.