A consulting company with the client’s best interest in mind will always take the time to inform about the exact services offered and the steps they will take to get a client to a beneficial settlement. There is no quick fix, and the debt settlement process will take some time in order to be debt free.
Stay away from companies that promise their debt settlement process will not affect credit rating or who promise debt problems can be fixed quickly. Going through a debt relief program means a credit score will go down before it goes up. This is one of the consequences faced when debt gets out of control to the point where it cannot be paid off.
Using a debt settlement plan is still a great financial choice, even if the credit score will go down. Choosing debt settlement means a business does not have to file for bankruptcy. To get a stable credit rating, business owners need to pay bills on time, or the score will drop significantly.
However, if an SBA own was used, then credit should not be affected too terribly. In an SBA loan, the borrower is the business entity. The business owner did not borrow; instead they are a guarantor in the event a business fails. A default on an SBA loan does not affect personal credit. Usually, a loan workout can be completed without damage to personal credit.
If a bank decides to sue personally since the owner was the guarantor of the loan and the bank has judgment against the owner, then the credit report will receive a negative mark. Engaging in settlement discussions with creditors on the personal guarantee, then a lawsuit or judgment can be avoided to save credit.
Seeing as the business is already in debt, it is a good idea to consider how much a consultant will charge and appropriately budget for their services. Choose a company that is affordable, not just overall, but for a client’s personal budget. Picking a company out of budget will only escalate debt problems.
However, choosing the cheapest debt settlement company will not be beneficial. A consultant company should fit in a client’s budget and offer services that the client specifically needs. A consulting company should gel well with a client’s way of thinking and financial goals. This takes some research and conversations with the company.
Being able to afford the monthly payments for the debt settlement company is the best answer to settlement solutions. This is the best way to handle credit card and other kinds of business debt without having to file for bankruptcy.
A debt settlement company should have top notch debt negotiators. Debt negotiators have a solid understanding of laws governing the debt settlement industry. They will fully understand each client’s financial situation and the best settlement possible for that business.
Make sure the consulting company offers bankruptcy assistance if debt settlement is not beneficial or achievable for a client. A company that offers bankruptcy solutions when a debt settlement has failed means they actually care about a client’s business and their debt and wish to provide the most comprehensive and beneficial solution.
A consulting company should offer many services to find the best solution for financial needs. Consultant companies should offer solutions to debt, equipment leases, offer in compromise, SBA loan, secured bank debt workout, unsecured vendor or supplier debt workout, IRS obligation and state tax debt, seller financing notes, secured mortgages, and debt management.
The consulting company should be experts at business debt relief with the ability to remove or reduce business debt that was incurred. A debt workout system should be provided to help businesses navigate around economy issues and toward financial freedom.