The U.S. Small Business Administration (SBA) cites poor credit management, lack of money and personal use of business funds as some of the top reasons why small companies fail. Businesses that lack money to cover basic expenses such as rent and payroll can quickly spiral into delinquency or, worse, bankruptcy.
Moreover, the Bankruptcy Abuse and Prevention and Consumer Protection Act of 2005 has made it harder for small businesses to prove they should be cleared of all or some of their debts through Chapter 7 bankruptcy.
To ensure the overall financial health of your business , it’s imperative to know the various options available for methodically and effectively paying down business debt. From eliminating excess costs, to restructuring debts through a third party, being proactive and formulating a payback plan enables you to manage your bills before they become unmanageable.