Finding debt relief for your small business

The financial position of your small business may have taken a large hit over the past few years due to the recession and the current state of the economy. If your customers aren't ordering as many products as you like and you are struggling to attract new customers that can generate more revenue for your business, there are some easy ways to find debt relief for your small business.

One of the easiest ways to find debt relief for your small business is to declare bankruptcy. Over 2 million businesses have declared bankruptcy in the past year, causing the Federal government to step in and provide some financial assistance. However unfortunately not every business is able to find debt relief form the government; leaving you with the unfortunate decision of declaring bankruptcy.

When you make the decision to declare bankruptcy, it is important to realize that you are running the business credit as well as your personal credit if it is tied into the business. Your business may be able to start over but many of them cannot start over and they find it next to impossible to work with lenders and gain the funding to move forward. Your credibility is shot and lenders now see you as a high risk investment, which is not something they want to have on their financial records. People don't want to work with a company that is shaky and can declare bankruptcy at any given time. Always consider bankruptcy as your last resort to find debt relief because you will find the road to recovery from bankruptcy is much harder than you can ever anticipate.

There are several bad debt lenders that want to help your business succeed and get back on the right track. Here are some of the debt relief solutions to try before you jump right to bankruptcy:
1. Contact your existing lenders. Working with your existing lenders before you get stuck in a bad debt situation can prevent you from getting into a position where bankruptcy is your only option. Lenders can provide you with a lower interest rate on your credit cards and personal loans before it gets worse so you can actually afford to repay your loans.
2. Work with bad debt lenders. Although the interest rates are going to be higher and your flexibility with the loans are limited you can easily get secure the financing in just a few minutes. Depending upon your payment history with previous lenders, your business credit rating, your personal credit, and your income ration you should have no problem getting approved for the loan. Bad debt lenders usually don't require collateral for the loan unless they are concerned about your ability to repay the loan.
3. Factoring. If your cash flow seems to be tied up, you should work with a factoring company that can buy out your old invoices and provide you with cash now. Although you won't make back all the money you have charged your customers, you wont have to wait to collect the money from your customers. It's the best way to fix your cash flow issues in a hurry plus you don't have to waste time dealing with hounding your past due customer to pay their bills.
4. Debt consolidation loan. This is a great way to improve your business debt problems as a debt consolidation loan will combine all of the business debt like your credit cards and your personal loans into a single monthly payment. This will help you actually see a window as to when your debt will be paid off and your business will be off to a fresh start.