You have put your talent, skill, and knowledge to work to establish your company. To grow the business, you must not only tap into your target market; you must also have a sound financial plan.
If you are like most entrepreneurs, you have not gone after seed money from venture capital firms or angel investors. The time and energy required to get money from such organizations is not worth it. If you have built your business using credit cards or a personal loan from your bank, you are not alone. According to a recent survey, nearly a quarter of entrepreneurs fund their companies by taking on personal debt.
The upside of this kind of financing is that you can get the money you need quickly. The downside is that you will be personally liable for the debt. In good years, when the economy is humming and there is high demand for what you sell, such debt is not an issue. The constant expansion of your business will bring in the kind of revenue you need to pay it off. However, if you are the owner of a struggling company, the debt that you took on to start it can be a serious problem.
If you are overextended financially, there are ways out of it without declaring bankruptcy. You can get out of credit card and other business-related debt through the process of debt settlement. Doing so can save you a tremendous amount of money in interest, late fees, and other penalties. Moreover, going through such a program will get you out of debt in two to four years.
Why Debt Settlement?
Debt settlement usually involves hiring a company that specializes in this area. They will work with your creditors to get them to settle a debt for less than what you owe. Credit card companies and financial institutions are not as intransigent as they sometimes seem. They can be persuaded to accept less than what is owed to them. It comes down to negotiation, and this is something that a debt settlement company can do well.
Debt settlement companies employ professional negotiators with a great deal of experience dealing with financial institutions. You will be able to leverage such expertise to get the best deal possible. You will also avoid the headache of negotiating with creditors on your own.
How it Works
The fastest way to move forward on debt settlement is to find a company you want to hire and fill out their online form. If you qualify for debt settlement, a representative of the company will call you to explain how they work and what you can expect if you choose this route.
If you decide to enroll in the program, you will need to build up a reserve in your savings account. After you have enough money saved, the debt settlement company will begin negotiating with each of your creditors until agreements have been reached. The debt settlement company will contact you to get your approval for each deal they strike with your creditors. After the full settlement amounts are paid, you will be free of debt.
You should bear in mind that debt settlement companies charge fees of between 15-25% of your debt. You can only be charged a fee after they have reached agreements with your creditors that you have signed off on. In most instances, you will still save more money by paying a debt settlement company to negotiate with your creditors than you would by doing nothing and making minimum monthly payments.
How Do I Qualify?
Some debts do not qualify for this type of program. Debt settlement companies cannot help you with mortgages, car loans, or student debt. But they may be able to help you pay off debt associated with the building up of your company.
The debt settlement company you contact will carry out a free debt evaluation. You will most likely qualify for debt settlement if:
-You have $7,500 or more in unsecured debt
-You are the sole owner of your business and the debt is in your name
-You fell into debt owing to the insolvency of your company and your need to borrow to keep it afloat
-You are struggling to make payments on your debt
The one thing you should not do is ignore the problem and hope it will go away. Nor should you indulge in the unrealistic expectation that business will suddenly pick up and your fortunes will miraculously turn around.
Being deep in debt can give way to feelings of isolation, loneliness, and despair. But you should remember that you are not alone, nor are you unique. Thousands of business owners have gone into debt in an effort to make their business succeed. Others have been where you are and have come through it alright. Going through a debt relief program will help you pick yourself up so that you can start all over again.
If you have done all that you can to keep your company going, if you have maxed out your credit cards and now find yourself struggling to pay what you owe, it is time to get help. Working with a debt relief company will help relieve some of the strain and stress of your situation. Rather than continuing to dodge calls and text messages from creditors you should bring in experts who will work with each one of them to settle your debt.