Restructure Small & Mid-Sized Business Debt

Cash is the lifeblood of any business and it is imperative that you manage your cash flow prudently and diligently if you are ever going to build or run a successful business. However, there are several headaches that business owners face when building a business that requires cash and nothing comes without a bit of risk so the majority of small-mid sized businesses end up taking out some level of debt.

Remove or restructure SBA debt

As the majority of small business owners know, the US Small Business Administration (SBA) offers some favorable loan rates to creditworthy borrowers of US based businesses. However, like the majority of debts, they require that the borrower signs a personal guarantee, that the loan is backed by real assets and that the business owner pays principal and interest on the first of the month each month. It is not a charity, it is a loan.

So if the SBA is so stringent and hard to work with, how do you get out from underneath a personal guarantee?

There are two answers to that. First, the SBA offers a hardship waiver. There are several steps to completing these waivers and only those with legitimate hardships can get out from under it.

Second, depending on who the lender is, we can renegotiate the loan. Ask for a lower monthly payment and a balloon payment, an increased duration or to pay interest only for a few year. This means that you as the business owner have time to right the ship, sell the business, or cash flow to pay your staff.

If you currently have an SBA loan you are looking to get out from under, have a read of our article on SBA loan removal and renegotiation.

Remove or restructure merchant cash advance (MCA) debt

In almost all situations, merchant cash advance loans are unnecessary and are predatory. We have very little respect for the lenders or loan brokers as they are not providing any type of value to the business. Instead, they are a leach on the cash flow.

This being said, it is not uncommon to see businesses that have utilized these predatory loans and even used several to pay off the previous ones.

Removing these loans is simple, you bulldog them. You tell them that you will pay 20%, 50% or even 70% of the balance and not a penny more. They will show you the papers that you signed and threaten to take you to court. Of course, in the majority of cases they would be losing far more money by doing this than if they were to simply take your settlement offer.

If you are an executive or owner of a business that is looking to get out from under burdensome debt, have a look at our distressed business investment and sales blog to see if you are a fit for us. If we don’t meet our criteria for some reason, we can send you to one of several companies that we know that can restructure your debt.