We’re continuously surprised by how little most
organizations know about their financial options in the face of seemingly
insurmountable debt loads and dwindling financial statements. We don’t mean to
sound judgmental when we say this. After all, most organizations don’t spend
very long time considering the worst-case-scenario when they first form, and
the level of economic education given to anyone
these days ranks slim to none. If you’re unaware of your options, it likely
isn’t your fault, but rather it’s a problem with business culture in general.
That being said, the sooner you can educate yourself on your
organization’s many options for finding its way out of a crushing debt
solution, the better.
When pressed on the issue, most organizations are only aware
of one solution to debt, and that’s declaring bankruptcy. This fact pains us,
as does the very idea of referring to bankruptcy as a debt “solution.”
Declaring bankruptcy shouldn’t be considered an option except in the absolutely
last case, when every other option has been explored and exhausted.
Contrary to popular belief declaring bankruptcy doesn’t give
your financial profile a guaranteed “clean slate.” Even if you could declare
bankruptcy with 100% assurance that a court will award you this status (which
you can’t), your bankruptcy will haunt you as a big, negative mark on your
credit history for many years. If you think you can declare bankruptcy and then
just go out and get the funding for a new business right away, think again. Having
a bankruptcy on your record dramatically reduces your chances of receiving
funding, and any funding you can acquire will operate under terms so
unfavorable you will need to seriously question whether the loan’s necessity.
If you have a significant amount of corporate debt then the
first step towards creating a truly healthy financial snapshot is contacting a professional financial organization that can help you find the best solution to
meet your needs.
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