Bankruptcy — it’s the word that all businessmen fear most. But what is it that most people can’t handle? The answer to that is simple, and that’s because they don’t know what to do if they see it looming over the horizon. So whether your business isn’t doing well or if you think that going bust is imminent, it’s still safe to say that you can do something about it.
Spelling out disaster and doing nothing about it is another way of saying that you accept defeat. That’s not the real case because you can do something to avert bankruptcy. And that’s what we’re going to talk about here.
You might have heard about interest rates, right? It might not sound like a big factor in putting your company in ruins, but in reality – it poses a huge threat to your business’ survivability.
As you prolong your debts, the interest rates start to take a toll and you end up paying more than what you just loaned. It increases exponentially when you leave it unpaid. So what’s the best thing to do? Simple. Pay them ASAP.
But you might say that it’s easier said than done. Well, no problem! Then cut down your expenses like your company cable, landline, or satellite television. Those won’t hurt your business activities too much with moves like this.
Don’t Hesitate to “Downgrade”
On the verge of bankruptcy? Don’t be afraid to downgrade.
When you realize that you can’t afford the growing expenses as a result of your company’s improperly planned “growth”, don’t hesitate to stop that supposed growth. Then sell your assets to spare enough money to pay your expenses and your debts simultaneously. Filing for an immediate Chapter 13 bankruptcy is not the way to go because there’s still hope. And that hope revolves around your ingenuity to sell what you don’t need.
It may be assets like your art, furniture, or perhaps sell your office building and transfer to a new one by means of rent. You might find it as downgrading. But in these kinds of situations, there’s no upgrade or downgrade. It’s either your business survives or ends up as a failed endeavor.
Seek Professional Help
The business world might seem to be all about competition and going over other people. That might be true for some, but not for all. Being on the verge of bankruptcy might be like falling into the pits-of-no-return. But remember that there’ll always be entities (not the spiritual ones obviously) to help you out.
Tai Lopez is a good example of a professional who experienced the ups and downs in the business world. And it’s with these trials that he managed to pull off and eventually succeed. He has now helped more than 20 multi-million dollar businesses to thrive in their respective industries.
With this, it makes perfect sense to seek the help of people who have been in the same situation, and instill within yourself the lessons they’ll teach you.
Avail Hardship Programs
This might come as a surprise to most of you. But trust me, this works. There are many credit card companies that have their own hardship programs that are specifically designed to help businesses cope up with financial problems. By simply expressing your eagerness in repaying back the debt in full, you can ask them to lower the interest rate or perhaps extend the repayment coverage.
To sum it all up, it just boils down to a single principle when you’re on the verge of bankruptcy. And it’s all about changing the way you deal with money for the better. When you do that, good things will follow and you’ll find it easier to do the aforementioned tips. So save your business from collapse before it’s too late!
Is your business on the verge of bankruptcy? Fight it with the suggestions above and continue driving toward success!!
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.