Filing bankruptcy has always been a “last ditch” effort before your company runs completely out of money and it is in total financial ruin. Sometimes, you have no choice and you have to file. Filing bankruptcy might save your business for a while, but it’s devastating on your credit. And, it will have a negative affect for 7 to 10 years. So, before you file, ask yourself… “Honestly, can you avoid bankruptcy?”
Try This First
If you file bankruptcy, it will cause you so many credit problems in the future. I know it is tough to do and you’ll hate to it, but ask your lenders to work with you on these financial problems. Particularly after these Covid-19 problems… they will probably be even more likely to understand. If they don’t work with you, there only choice is to sell the debt to a collection’s agency for a fraction of what it is worth. Or, they can risk you filing bankruptcy and they might lose collecting on any of the debt. Most lenders work with their debtors all the time. And, they’re probably doing it more after this Covid-19 problem.
Maybe Accounts Receivable Financing
A cash squeeze may occur if you have sold your products to another company and you have given them 30, 60, 90 days or longer to pay. Meanwhile, your debts come due and your waiting on your customers to pay.
In circumstances like these, work with a factoring company and get these debts paid before deciding "Can you avoid bankruptcy?"
Explore Peer-To-Peer Lending
Don’t even go to banks for a loan. Explore peer-to-peer lending. Seek out other individuals and/or businesses that might be anxious to loan money. These individuals/ businesses might be willing to do this if they think they can get a better return on their money than using it on other avenues that they might have available.
The problem with this, of course, if you are already having financial problems, why would they want to add to it. Well, they still might do it if they can see that you still have financial means to pay back added debt. For instance, they might see that if they give you some extra cash, then you might be able to pay off an alternative major debt and then have money to pay back the new debt on an ongoing basis.
Attorneys Are a Last Resort
If you have explored all of your alternatives, securing a bankruptcy attorney should be your last step. Get an attorney who specializes in bankruptcy. They know which creditors need to be paid and what steps need to be taken. They will examine all of your alternatives and if they believe your next step is to file bankruptcy, they will make it a whole lot easier. It will cost you additional money, but when you get done, you will think it was well spent.
Call Caps Funding, LLC Deciding "Can You Avoid Bankruptcy?"
Caps Funding, LLC is an accounts receivable factoring company. Factoring was an option that you needed to explore before filing bankruptcy. Give the owner of Caps Funding a call to help you explore and clarify your position before you file bankruptcy. Business owners do it all the time. Charles is the owners name at Caps Funding. Pick up your phone and dial his telephone number at (803) 429-3686. Or, you can email him.