Small business debt relief is available to those who need and qualify for it, as it should be for the following reasons.
Statistics class a small business as one employing less than 500 people, this number is then divided into several sub categories.
The smallest is 0 to 9 employees and this category accounts for 63% of all business's in USA.
Now add in the next group employing 10 to 20 people and we are looking at serious employment numbers.
Business's in these 2 categories are vital to the USA economy, and will benefit the most from small business debt relief should they need it.
Not all will qualify but if the business owners have the skills and desire to make it profitable again with the help of a business debt relief program then they should be encouraged to do so.
Many have filed for Chapter 11 bankruptcy but this should be the very last consideration.
Apart from the obvious effects is also very expensive costing in total at least $50,000 up to $100,000, or more.
A good option for an owner needing business debt relief is to approach an established company who specialize in business debt settlement, and there are several of these to choose from.
The best debt relief companies will quickly give the business owner a free no obligation debt settlement appraisal, and will do this online.
The company will have records and testimonials showing consistent success in arranging small business debt settlement, have a guarantee of success, and have knowledgeable staff qualified to help clients with questions.
It is essential they establish who the key suppliers to the business are and arrange an ongoing supply agreement with them, plus arrange a debt settlement program with other creditors based on what the business can afford to pay each month.
The company will focus on reaching out of court settlements based on what the company can afford, as most creditors will consider a debt settlement program as being in their best interests to accept.
To achieve debt settlement like this it is essential the company is well experienced in successfully negotiating with creditors small business debt relief.
The objective is for the business owner to be free to concentrate on running the business, and eliminate dealing with creditors as this is an important factor in getting the business profitable again.
They need to seek debt relief help as soon as they realize they are getting into an excessive debt situation, but seems many don't as annual statistics show around 50% don't survive past 5 years, with the highest casualty rate being those less than 2 years old.
This is not good especially if employees are involved as the business closure adversely affects them as well.
Same applies with solo operators.
Some no payroll business's are very profitable, but many owners have in reality a job without a boss, work extra long hours and just scrape by financially.
Mostly this is because they are good at what they do but not so good with essential administration, so where this is the situation a business debt relief program can often be the turning point in making the owner realise organising better administration is essential to being profitable, and allow some spare time.
Mostly they can do this by employing an office assistant 4 to 8 hours a week to do the administration leaving the owner free to get on with working the business more productively.
I have helped business do this and my next article will illustrate ways of making a business better managed and more profitable so it shouldn't ever need debt relief.