What To Look For In A Corporate Debt Restructuring Company

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If your business is not doing well financially, it may be time to look into corporate debt restructuring. The good news is that there are a great deal of debt restructuring agencies that have the necessary experience to help you streamline your business’s debt. However, not all of these agencies will provide the best results so here are some things you should always look for when picking the right one to help you with your corporate debt settlements.

Avoid Spammers

You have probably noticed that both your personal and business emails and phones are seemingly constantly plagued by companies promising to provide debt release or help with corporate debt settlements. While these companies are easy to find, the fact that they are so desperate for clients that they feel the need to spam is a bad sign. This indicates that their services are not of the top quality and they may not be the most reputable.

Never Give Credit Card Information Over The Phone

Some corporate debt restructuring companies will seem great the first time you talk to them on the phone and will ask for your corporate credit card information in order to “start the process” and look into your debt. There’s a high probability that companies who ask for this are scammers as no reputable company that deals with corporate debt settlements would ever ask for this information over the phone.

Be Reasonable

Some debt release firms will claim that they can eliminate all of your debt in a few weeks no matter how large the debt is. Most of the time companies that make very specific and unbelievable claims simply want to attract clients and will not be able to deliver on the claims. Keep in mind that corporate debt settlements can be a slow process and will never happen instantly. Instead, look for a corporate debt restructuring company that makes claims that seem reasonable.

Three Practical Ways To Manage Your Accounts Payable

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When you own or operate a business, it is vital that you keep up with your accounts payable.  Not doing so can result in difficulty obtaining goods you need to run your business, and delinquency can damage the reputation of the business.  Paying your creditors on time can help keep you in business.  Follow these tips to manage your accounts payable to avoid delinquency.

Take Advantage of Technology

Technology can help you stay on top of your accounts payable.  Make sure that your accounting software has the ability to manage your accounts payable; if it doesn’t, upgrade your software so that you can get rid of paper ledgers and spreadsheets and maintain your accounts by computer.  You can also hire a virtual, part time accounting assistant to help with managing your accounts payable.  A part time virtual accountant will need just a few hours per week to manage your accounts.  Having someone to assist you outside of the business is also beneficial for eliminating theft from your business, which often occurs through accounts payable.  

Opt For Auto-Pay

For recurring payments, consider opting for an auto-pay function that will automatically debit the amount you owe on the due date each month.  This way, you won’t have to spend any time on managing these accounts, other than to enter the debit into your accounting software.  Utilities, mortgage and insurance companies, and other large payees often offer this feature, which helps ensure that the creditors that you must maintain each.  Make sure that auto-pays are entered accurately into your accounting software each month. 

Make Your Accounting Software Work For You

Generate a report for your available cash flow if you have to juggle your accounts payable.  With a few simple clicks of your accounting software, you should be able to determine the balances of your checking account and your credit lines.  If you must pay some of your creditors late, give them a courtesy call to let them know before the payment becomes overdue.  This can help salvage your relationship with the creditor. 

What is the best way to prepare for corporate refinancing?

When is it Time for Corporate Debt Restructuring?

Financial hardships are never something that a business owner wants to think about, however sometimes even the most well thought out businesses have to face them.  When these hardships arise, and the inability to meet your obligations becomes prominent, corporate debt restructuring may be a valid option. 

Corporate debt restructuring consists of making an effort to reduce the financial burdens that a company holds.  The basic way of doing this is by allowing for the company to have more time to pay their obligations and by reducing the interest rate that is being paid.  On occasion allowing your creditors to have equity in your company may reduce the principle sum of the debt.  It’s times like these that negotiating with your creditors is very important in order to avoid having to file for bankruptcy. 

An important thing to remember about corporate debt restructuring is that it’s important to not let yourself slip too far before you opt for a restructuring plan.  These plans, if enacted correctly, should bring s speedy relief to the financial situation of your company. 

It’s also imperative to keep in mind that the need to restructure your debts does not indicate a failure of any sorts.  Having to restructure should not be embarrassing for you or your company, it should actually be viewed in an opposite light.  Past experiences have shown that corporate debt restructuring, if done properly, can reflect positively as responsible and knowledgeable management.  Both internal and external recipients view it positively. 

Corporate debt restructuring is not a last case scenario.  It should be at the forefront of your mind when you first notice your financial struggles. 

Is Your Business Drowning In Debt? This May Be Your Best Way Out

Having debt is an inevitable part of being in business but in order to keep your business thriving you have to be able to manage your accounts payable. At American Corporate Turnaround, Inc. our goal is to help get your small to medium-sized business back on track by restructuring your debt. Our corporate debt restructuring service is just the thing you need if you find yourself in a situation where you are constantly falling short of funds and unable to pay your current bills because you are still trying to catch up on your old debt.

Whatever your current situation is, whether you are dodging collection calls and trying to avoid bankruptcy or just simply needing to improve your balance sheet for your business and improve your cash flow, American Corporate Turnaround, Inc’s consultants can help you through every step of the debt restructuring process. We offer an in-depth analysis of your current debt in order to decide your best course of action. We work with you one on one to determine the best way to reconfigure your budget. In addition, we take over the often unpleasant process of talking to your creditors which we always do in a professional and courteous manner. This frees up more time in your schedule for you to run your business.

Here at American Corporate Turnaround, Inc we work with many types of debt everything from credit cards to contractors from leases to loans. The best part is that we operate using a success based fee that is due only after you are reaping the benefits of our service, so as not to contribute to the debt you are coming to us to repair. So go to our website www.americancorporateturnaround.com today to fill out a simple application and receive a no cost consultation.

When The Debt Doctor Is Also The Dad

Everyone is familiar with the medical standard that prevents doctors from saving the lives of their loved ones. In a crisis, when objectivity is often replaced by emotions, neither doctor nor sick loved one is well served. It’s the same for your company. If debt is crushing your ability to do business, focused professional debt release negotiators are better equipped to resuscitate your operation without the drama.

Before you assume the role of savior for your company, here are several issues to consider before beginning a do-it-yourself corporate debt settlement.

 

Reducing Debt on Your Own is a Lonely Option

Attempting to negotiate a debt release settlement on your own is a solo undertaking. You may know your creditors. You may be familiar with the collection agency, maybe a bit too well. Perhaps you are on a first-name basis with your lenders, which should be the case regardless of your company’s financial health. But negotiating a debt release for your company by yourself can be a lonely undertaking. The burden of the outcome lands squarely on your shoulders.

 

Too Close to the Patient

Whether the company has grown under your long-time watch or other people in authority have placed a new responsibility on you to lead, the performance stakes are high. The pressure is on to improve your company’s ill health. This can cloud your judgment in many ways. Desperation can set in and emotions can take control, unhealthy places from which to negotiate lower debt obligations or undertake a corporate debt restructuring. If the business is your baby, realize your shortcomings and find the most skilled professionals to handle the debt release.

 

Corporate Debt Settlement is Part Art Form, Part Experience

Unless you’ve spent a considerable amount of time in sales, mediation and finance, the ins and outs of reducing or releasing debt held by creditors may be foreign territory. It requires credit industry know-how, diplomacy and a keen knowledge of negotiation tactics. Even with the vast amount of information available on the web, your efforts to get the best possible debt release are far less optimistic than the work of a seasoned professional. Your energies are better spent focusing on your business’s mission with the understanding that you don’t have to wear all the hats all the time.

Take the time to consider whether your patient needs a home remedy or a specialist. If the business is your precious offspring, a corporate debt restructuring plan may be the best medicine.

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.

Bankruptcy isn’t Your Only Debt Solution

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.

Why You Can’t Restructure Your Debt on Your Own



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If your organization suffers under a heavy debt load, then you’ve probably thought about taking matters into your own hands by attempting restructuring on your own. While it’s technically possible to enter into negotiations with your lenders on your own, achieving a favorable result through self-representation is all but impossible.

This statement has nothing to do with how smart you are, how effective you are at negotiation, or how much time you can devote to working with your lender. Instead, it has everything to do with the fact corporate debt restructuring is a highly specializedfield composed of a variety of factors that are best embodied by professional turnaround companies.

For example, debt restructuring is a complicated process filled with many technical and legal factors that need to be taken into serious consideration. The exhaustive knowledge and professional sensitivity required to navigate this potential mine-field can only be developed by working in the field, day in and day out, for many years.

Debt restructuring can also be a very emotional process. Business owners are always too close to the proceedings to pursue them with the cool head and sense of objectivity necessary to acquire the results they desire. This emotional closeness can cause a business owner to feel paralyzed at the prospect of negotiating with their lender and to accept a less-than-ideal resolution simply to release the tension inherent in debating with their lenders.

At its heart, like all businesses, debt restructuring occurs on the person-to-person level. Success in negotiating a favorable restructuring plan often has as much to do with the relationship between the individual on each side of the table. If you’ve had a difficult time paying back your debtor, then there’s a good chance your relationship will already be strained. When you work with an experienced turnaround company, you benefit from the positive relationship that company has likely already developed with your lender through past cases working together.

Why Can't I Just Restructure My Debt on My Own?

Your Corporate Debt Wastes More than Your Money

People tend to talk about debt like it is primarily, if not entirely, a monetary problem. They fixate on the amount of money they owe, how much they need to spend every month to make their minimum payments, how long it will take them to eliminate their debt when they contribute X, Y or Z dollars a month, and how quickly their debt’s interest rate bleeds their bank accounts dry. There’s no doubt about it, the problem of debt can be easily understood as a problem of money but debt wastes a whole lot more than corporate funds.

There’s one resource debt wastes that’s even more precious than the money your organization could spend elsewhere, and that’s your organization’s time. A large, poorly managed debt load will devour your organization’s time in a few insidious ways.

1.       Your organization and its employees will spend a significant amount of their own time trying to figure out the best way to handle its debt load.

2.       The more money your organization owes, the more of its productive hours effectively belong to its lenders. Whenever your employees are working to pay off your organization’s debt, those employees aren’t working to provide for the growth and profitability of your organization.

3.       The money your organization spends paying off debt could be put to better use investing in the infrastructure and capacity building actions your organization needs to take to reach the next level of success.

This last point is most important, and deserves further explanation.

Think about it this way. Your organization earns $500 a month in profits. In order to reach its next stage of growth, it needs to buy a $1,000 capacity-expanding widget. If your debt load eats up $400 a month of your profits, then you won’t be able to buy that capacity-expanding widget for 10 months. However, if you restructure your debt so you only need to pay $250 a month in debt, then you can have that widget and grow your organization to the next level in just 4 months, accelerating your organization’s growth by 6 months.

Debt may fundamentally be a monetary problem, but it really kills your organization by consuming an even more precious resource- its time.

Are Your Taxes a Ticking Time Bomb?

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It doesn’t matter how big or how small your company may be - you need to take an incredible amount of care with your taxes at all times. Every quarter. Every year. Failure to file your company’s taxes correctly can set your organization up for a potentially crippling series of unexpected legal and financial quagmires you never knew even existed. While having in-house accountants handle your finances is one way to approach the situation, it’s wiser to work with an external financial organization to make sure every line of your ledger books reads clean and clear.

There are many negative situations that can arise from your organization improperly paying its taxes, but the worst of these is your organization getting behind in its taxes. When your organization owes the government a large amount in taxes, that debt will work just be about the same as every other form of debt, and it can be just as potentially crippling as debt you owe to suppliers, contractors, advertisers, or anyone else your organization does business with. In fact, we’ve even found that organizations suffering under a significant amount of tax debt tend to be even more confused and apprehensive about how to handle this burden than debts to private institutions.

That’s why we specialize in helping companies like yours handle corporate taxes and the ramifications of your company accruing a significant amount of back taxes. If your company finds itself in this unfortunate position then you have a few options at your disposal, all of which involve negotiating with tax collectors to reach a mutually favorable agreement. When negotiating with the government you can establish a compromise settlement, you can agree to a certain size and frequency of installments, and you can even negotiate on non-collectibles.

The right solution for your company depends a lot on its current financial situation and future plans. We’re happy to speak with you about which option will best suit your needs and the ideal way to proceed with this potentially confusing and intimidating arena of corporate debt.

Will Debt Restructuring Help YOUR Company?

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A funny thing happens whenever you talk about debt restructuring with a company that finds itself in a negative financial position. These companies tend to look over testimonials and feedback from our previous clients, and they acknowledge that debt restructuring really seemed to work out for those other companies. And then these companies proceed to doubt whether debt restructuring will work for their company. What’s going on here? Why are so many debt-burdened companies skeptical about whether restructuring can solve their specific problems?

Every debt-burdened company is different. While there are some common threads, some predictable points of history that often repeat themselves between the varied clients we work with, at the end of the day every company is in a different situation and requires its own specially designed solution. We not only acknowledge this reality, we embrace it. Only by acknowledging the specific circumstances of our clients are we able to construct the perfect solution to meet their present, and future, needs.

That being said… there are very few companies whose circumstances prevent them from taking on a course of debt restructuring. No matter how peculiar or dire your company’s debt situation may be, there’s a good chance we’ve seen worse, and there’s an even better chance we’ll have the perfect solution for you in short order.

You see, the main reason companies wonder whether debt restructuring will work for them is sheer insecurity. When a company crawls under a stifling, crippling load of debt for a significant period of time, that company tends to lose its confidence. Yet even more than adopting a victimized mindset, companies that struggle under sizable debt problems ultimately feel incredibly isolated, and that makes them feel there’s no form of help out there that can drag them back into the green light of profitability.

Rest assured, your company is not alone, there is help outthere waiting for you. All you need to do is ask.

Will Corporate Debt Turnaround Work for Your Company?

The Emotional Side of Corporate Debt Restructuring

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More often than not discussions of corporate debt restructuring fixate entirely on the measurable, concrete benefits gained from the process. Corporate debt restructuring will make your payments fixed and significantly more manageable. Corporate debt restructuring will improve your organization’s cash flow and allow it to expand its operations and grow to the next level within its industry. Corporate debt restructuring will eliminate the fees and charges choking your profits while improving relations with your lenders, suppliers and contractors. But the emotional benefits derived from pursuing corporate debt restructuring are arguably even more important.

Business is, at its heart, about relationships. The relationships between co-workers, the relationships between lenders and business owners, and the relationships between business owners and their company. All of these relationships are damaged when a business is loaded with more debt than it can handle. Coworkers are constantly under pressure because they believe the only way to escape their company’s financial woes is by working harder and harder and harder. The relationship between business owners and suppliers, lenders and contractors is stretched to the breaking point. After all, a loan or services rendered without upfront payment are provided on account of trust between everyone involved. Finally, a business owner stands no chance of enjoying their company and expressing their love and passion for their organization when they are saddled with a crushing debt load.

All of these relationships are healed and mended during a corporate debt restructuring. While increased cash flow is important, so is restoring the trust, love, passion, and feelings of self-worth that find themselves lost when debt becomes a monumental problem.

Solving the Collections Problem

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The very concept of extending credit to another is fraught with a number of problems. At a very basic level, every single time you extend credit to an individual or an organization you are taking a significant gamble. As much as credit card companies issuing plastic, banks giving our mortgages and suppliers taking net-90 terms may like to think they’ve figured out how to tell a potential problem client from a “sure thing,” it’s ultimately impossible to know who will make their monthly payments and who won’t. Even seemingly high quality, highly reliable clients will miss a payment here or there, and even the most affluent of clients can allow their loans to drop into delinquency.

Instead of obsessing over developing formulas that will help you find a truly “risk-free” client, it’s wiser to simply factor risk into you projections. Instead of attempting to only work with clients who you believe will never default on a loan, it’s better to create systems for collecting debts once they’ve fallen into delinquency.

The majority of companies would rather not collect their own delinquent debts. Not only is debt collection still considered a somewhat distasteful act, fixation on debt collection forces an organization to divert attention and resources away from what should be their primary focus; the day-to-day running of their business. Most companies will benefit from working with a qualified and experienced debt collection agency, especially if the debt they are looking to collect is business debt. Doing so will allow that organization to focus on what matters most, and to benefit from the expertise of a professional collection organization.

Look Elsewhere for a Magic Bullet Cure for Debt

Corporate debt restructuring almost always has an immediate positive effect on the organizations that pursue it. Companies that restructure their debt tend to improve their cashflow, restore their relationship with their lenders and suppliers, and fix their debt problems in private. Yet as positive as it generally is, corporate debt restructuring is NOT a “magic bullet cure” for your company’s debt problems. Instead it should be seen as a “better option” than more drastic measures.

If your company suffers under a large debt load then you’ve probably considered declaring bankruptcy. While bluntly effective in removing a debt burden, declaring bankruptcy is not a viable option for the survival of your business and for your ability to create another business in the future. Debt removed during a bankruptcy doesn’t simply “go away.” Sure, under the terms of most bankruptcies you won’t need to pay another dollar on those debts, but the fact you and your company defaulted on those loans will become a matter of public record. Bankruptcy will all but kill your company’s ability to be seen as an eligible borrower in the future and it will create similar damage on your personal lending profile. The specter of your debt will linger in highly unfavorable ways, for a very long period of time, after you’ve successfully declared bankruptcy.

Corporate debt restructuring, by contrast, is a private matter negotiated between you and your suppliers, your contractors, and your general lenders. While these lenders would naturally prefer you stuck to your existing repayment plan, they would rather renegotiate your terms then risk losing your loan entirely through bankruptcy. So even though corporate debt restructuring isn’t a “magic bullet” cure for debt problems, it is superior to many other resolutions for both you and the organizations you owe.

Can Corporate Debt Restructuring Help My Company?

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Let’s make one thing clear- corporate debt restructuring is NOT a magic-bullet cure for your organization’s financial problems. If your organization continues to take on more debt they can handle, if your company is unable to use their restructuring as a means of reaching profitability, and if your company approaches restructuring as a “get out of jail free card” then you will eventually run into the same problems you’re experiencing right now. That being said, for the majority of organizations corporate debt restructuring can be an intelligent step to take, one which will relieve the pressure of their debt load and provide them with the means of reaching sustainable profitability.

There are many ways in which debt restructuring can help your company, but an intelligent restructuring plan will have the greatest positive impact when it comes to improving your organization’s cash flow. There are many, many, many organizations in the world that are technically profitable but who aren’t able to achieve a high enough level of profitable cash flow to expand their operations. These organizations have excellent business models and are generally run in an intelligent manner, but most of their profits go right into debt repayment.

For these organizations, a debt restructuring plan will provide them with lower monthly loan payments, which will in turn provide them with the greater positive cash flow they need to grow and evolve as an organization. Without debt restructuring these organizations would stagnate, they would unnaturally remain in on position, and they would never achieve their corporate potential. With debt restructuring they can achieve a market position that allows them to comfortably pay off their debts in full.