Running a business can be very tough, especially for startups. Before you realize it, you are neck deep in debt, your cards and lines of credit are maxed out, and you are looking at an impending business closure unless you can settle your debt quickly and effectively.
Debt Negotiation and Debt Settlement Explained
Essentially debt negotiation involves discussions with the creditors on how to reduce the quantum of a specific debt that is payable. However, since no creditor really wants to be denied his dues, the concept is easier said than done. Among the many factors that can lead to a productive result, the most significant are enhanced negotiation and persuasive skills and intensive knowledge of state and federal laws to counter potential lawsuits, as well as the ability to chalk out a settlement agreement that is completely watertight. Quite obviously, the success of negotiation depends on the extent the negotiator understands the mindset of creditors and how far they would be willing to bend.
Is Business Debt Negotiation by Yourself Possible
There is nothing that technically bars you from negotiating your own debt settlement, and indeed it may be quite helpful in keeping your costs down if the outstanding amount is relatively small and there’s only a single debtor. However, if your debt and number of creditors are both large, it can prove very difficult to manage the process by yourself. Even, your lack of expertise may land you into deeper trouble. It is always a good idea to hire the services of an attorney competent in these matters. Invariably, you will discover that the cost of engaging an attorney will save you much more. You can get in touch with creditors relief for professional assistance.
Factors That Need To Be Considered In Business Debt Negotiation and Settlement
In most cases, when you initially fail to make your payments on time, the creditor will remind you politely, however, your continued non-payment of dues will invariably invite a legal notice. You can be certain that if you approach the creditor for negotiation and debt settlement then your approach will be handled by their legal counsel, either in-house or engaged otherwise. Since you will invariably need to negotiate with legal counsel of the creditor, you face serious difficulty if you too do not have adequate legal representation.
It would be naïve for you to expect that your creditor will settle for less just because you ask. You need to have leverage in the form of a strategy that factors in applicable legal principles, legal defenses, your financial profile, errors committed by the creditors, the age of the debt, and more factors. Having leverage will allow you to present a valid reason as to why the debt should be settled for less.
There is no point in attempting a debt settlement unless you have a game plan ready and armed yourself with the expertise required to achieve your target. The more the extent of debt and the number of creditors, the stronger must be your preparation and defense.
About Author: David Jones has extensive experience of debt settlement lawsuits. He writes frequently in business and personal finance journals on debt management issues and recommends creditors relief for fast solutions.