Innovative Ways Of Dealing With Debt As A Small Business Owner


Too much debt, insufficient capital, and poor credit arrangement are three main causes of small business failure in the United State of America according to the small business administration.

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The average gestation period for small businesses can be as much as 3-4 years, however some businesses often discover that the accumulated debt burden after this gestation period is another burden on its own and can often lead to business collapse. In this article, you will discover five innovative ways of dealing with debt so as to forestall filing for bankruptcy.


Debt consolidation strategy is an innovative way for a small business owner to manage it debt properly. Debt consolidation method involves aggregating various high-interest debts into a single low-interest debt sometimes taking up by another company for ease of repayment.

A business debt consolidation loan will allow a business owner innovatively refinance its loan through the debt consolidation company and thus eliminates having to deal with many creditors and also spreading the repayment over a longer period of time at lower interest rate.


Another innovative way of managing small business loans is by using a debt settlement company or organization to negotiate a settlement with creditors. A debt settlement company working on your behalf engages your creditor and negotiate for you to pay a considerably lesser amount than you owe to the creditor for a total forgiveness or cancellation of your entire debt as soon as they agreed percentage of your debt is paid your creditor canceled all outstanding debt obligations.


Another innovative way by which a small business owner can conveniently manage its debt is through the debt management strategy. Debt management or credit counselling involves enrolling in a program organized by a debt management company which involves debt counselling. It is similar to debt settlement, however in the case of debt management, the debt management company manages your debt, consolidate these debt and negotiate a reduced interest rate for you and payoff your creditors while you fund a dedicated account opened with the debt management company.


Although not favored by many small business owners, filing for bankruptcy under chapter 7 can also be an innovative way of getting small business owner manage their debt. It is the last option often considered by financial advisor and debt managers. A good debt management company will assist in filing your papers and making sure that you are eligible for chapter 7 bankruptcy instead of chapter 13v which is more stringent. With chapter 7 you are totally forgiven while with chapter 13 bankruptcy you still have to pay a certain amount


In summary, small business owner can manage their debt using a debt management company, through debt consolidation, debt settlement, debt management or filing for chapter 7 bankruptcy. A good debt management company with professional financial advisor will assist you in making the right decision and work you through the best option.


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