Getting Relief from Small Business Debt
Running a small business can be extremely rewarding, but it also comes with financial challenges. If you’re struggling with business debt, know that you’re not alone. The past few years have been tough on many business owners. But help is available.
Understanding the Problem
Small businesses have taken on a record amount of debt in recent years. According to the SBA, small business loan balances reached over $1 trillion in 2021 – an all-time high. Much of this debt was taken on just to survive the pandemic and economic uncertainty.Now, with rising interest rates and fears of a recession, many business owners are struggling under the weight of debt payments. For some, it feels impossible to keep up. But ignoring the problem won’t make it go away.
-There Are Options to Find Relief
If your business is facing more debt than it can reasonably handle, you have options:
- Work with an attorney or legal firm that specializes in debt relief. They can review your situation and work on your behalf to negotiate settlements or restructure payments in a way that works for all parties.
- Consider filing for bankruptcy. As scary as it sounds, Chapter 11 bankruptcy allows you to reorganize your business debt under court supervision while continuing to operate. This stops collections and foreclosures while working out a manageable payment plan.
- Seek an SBA disaster loan. The government offers low interest loans up to $2 million for businesses facing financial hardship. Terms can stretch 30 years to keep payments affordable.
- Ask creditors for better terms. You can try negotiating lower interest rates, reduced monthly payments, waived fees, etc. Most creditors would rather get something than force you into bankruptcy.
- Seek an SBA 7(a) loan to refinance debts at a lower rate. This program helps lenders provide more affordable capital to small businesses.
The key is being proactive. Don’t wait until missing payments catch up with you. Addressing financial challenges head on gives you more options.
How Delancey Street Can Help
Delancey Street understands the unique debt challenges facing small business owners. We’re not a law firm, but we have attorneys on staff who can negotiate and structure settlements on your behalf.Our dedicated experts will review your situation, including:
- All outstanding business debts and liabilities
- Collateral tied up in loans
- Your current and projected cash flow
- Assets that could potentially be sold to pay down debts
Based on a full understanding of your finances, we strategize creative solutions tailored to your small business. This includes negotiating with creditors, structuring repayment plans, and helping you avoid further penalties and legal action.We simplify the process so you can get out of crisis mode and back to focusing on operating your business.
-What Makes Us Different
What sets Delancey Street apart is our empathy combined with financial expertise. We understand the exhaustion business owners feel when facing unmanageable debt. Our mission is to lighten that burden so you can look to the future again.We have experience serving small business owners in every industry, including:
- Restaurants
- Retail shops
- Salons & spas
- Professional services
- Hospitality
- Manufacturing
- Healthcare
- Construction
- And many more
Regardless of your business type, we approach each client as humans first. Our attorneys and financial experts have your back. We handle communications with creditors so you don’t have to.
Our Debt Relief Process
We make the process of getting small business debt relief simple:1. Schedule a ConsultationOur initial call is free and no-obligation. We’ll discuss your unique situation, specific debts, and financial goals. This helps us tailor a debt relief strategy just for your business.2. Review Your FinancialsAfter signing engagement letters, we’ll ask you to provide supporting documents so we fully understand your debt obligations. This includes tax returns, profit/loss statements, accounts receivable/payable, assets/liabilities, etc.3. Negotiate with CreditorsWe contact each of your creditors directly and negotiate revised repayment plans that lower your monthly burden. This gets collectors off your back.4. Legally Binding AgreementsWe draft customized legal agreements with each creditor spelling out new terms and ensure all parties sign. This provides legal protections.5. Ongoing SupportEven after new repayment plans are signed, we check in regularly to ensure you remain on the right track or intervene immediately if new challenges emerge.
Address Debt Before It’s Too Late
Ignoring financial troubles only gives them time to spiral out of control. Like a leaky pipe, a little debt can turn into a hugely expensive and stressful flood if not handled promptly.Our small business debt relief attorneys want to help you fix the leak before your credit rating, business assets and personal life are harmed.Let us shoulder the burden of working with creditors so you can focus on what matters most – running your business.
Have More Questions?
If you have any other questions regarding small business debt relief or want to discuss your specific situation, don’t hesitate to <a href=”https://www.delanceystreet.com/contact-us/”>contact us</a>. Our experts are standing by and happy to help.
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