Times are tough all over and your business may have suffered because of it even though it is no fault of your own. When faced with increasing costs and decreasing income you may have used short term financing to bridge the gap until the economy and sales recover. But what happens when the recovery does not come soon enough and your are faced with the possibility of bankruptcy.
First realize that you are not the first one to face this situation as many of the top companies in the world have had times when debt relief was the answer to their short term problem. There are many ways to get out of debt and avoid bankruptcy. Here are 5 that you can implement.
1) If your company offers stock to the public you can put together a new securities offering and raise capitol to pay the debt off. Your shares of course will decrease in value but debt relief is the primary objective at this point in time.
2) You can renegotiate with your creditors to lower your payments or you can offer them stock or future earnings in exchange for a reduction or full payment of the debt.
3) Another option is to reduce overhead. Do you have any offices you are leasing that could be downsized and brought back to the main office.
4) You can sell unused equipment or even lease to someone else for a short term infusion of cash.
5) You can sell off any unprofitable divisions of your company to another company that can turn it around and make it profitable.
These 5 ways to get out of debt may be all you need to avoid bankruptcy.
The main goal of course is to reduce the debt load and increase the net earnings to keep the company afloat. Some wisdom and due diligence must be used when implementing these courses of action.
If you decide to bring in a company to help with any of these solutions be sure to verify that the company is able to provide the best solutions for you. Check with other business owners who have used them and any government agencies that could provide helpful information.
When times get tough and you feel the weight of the debt piling up know that you have debt options to keep your company running and these could be the key to bring your company back to profitability.