Signs That You’re Company is Carrying Too Much Debt

Are you dipping into your credit line’s burlap sack and coming up empty? Determine if your debt load is too high with these tests:

 

 

 A Lender Won’t Lend

Bank practices may vary, but if a good relationship with your lender, or any lender, turns negative, it’s a flashing sign you should focus on debt reduction or debt release. A corporate debt restructuring plan may make you attractive to your banker again.

 

 

 More Time Spent on Managing Debt Than Productive Tasks

Running a corporation demands foresight, planning and vision. If you spend most of your time scrambling to cover accounts payable, your debt is too large. A corporate debt settlement can be a release valve for the pressures of keeping up with past-due accounts.

 

 

A Blown Budget

Small- and medium-sized businesses thrive under strict budget. Are your accounts all over the map, varying from month to month? Have your expenditures run rough-shod over your spending limits? It could mean that your debt is too large. A debt release settlement can correct your budget.

 

 

 Compare Notes on Debt Ratios

Knowing your industry or professional standards on debt ratios is a must. A debt ratio is simply a snapshot of what you owe compared to what you bring in. If you don’t have a clue whether yours is in line with your industry, find an advisor to help you fill in the blank. If proprietary issues prevent sharing with colleagues in your corporate network, an experienced advisor can help you determine if a corporate debt restructuring could benefit your bottom line.

 

 

Sleepless Nights or Nightmares of Debt? Release Them

Your comfort level with your company’s debt is a subjective matter, but one that must be given credence. Are you awake at night worrying about how many debt obligations you are managing? Late payments? Missed due dates? If so, then chances are you need to restructure your debt and get a good night’s sleep.

 

 

 Best Practices? What Best Practices?

Many businesses operate in a vacuum -- started on a good idea, built on hard work and grown through persistence. Yet good intentions are not the same as best practices. Education is essential, especially when it comes to cash flow and debt. Even the best of intentions can send a good idea into a sea of bills. Debt release settlements can reduce and provide structure to your obligations.

One factor can overcome a downward direction, and that’s good advice. Corporate debt settlements are far less scary than continuing on a hopeless trajectory.