Creditor Communication
Emerge180 provides advice on how to speak with creditors
TAMPA, Fla., June 23, 2014 /PRNewswire-iReach/ -- Prioritize
This situation happens every day. Cash flow dwindles. Bills go unpaid. The phone begins ringing and letters arrive insistent on money. An element of threat comes with the calls and bills. Lack of payment can halt the inflow of necessary supplies. But what is the solution when the companies that owe your business aren't paying? The challenge is to break out of the cycle before your company goes under. When these things happen, it's important to be objective and not panic.
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Some of your customers are in the same fix you are—trying to get payments from other organizations. Frustration builds for everyone.
Begin by determining who your most important creditors are. Contact them first and attempt to work out extended terms. With limited funds, the loudest voice isn't necessarily the most critical. Do your best to negotiate in order to keep your supplies coming. Commit the time to list which people must be taken care of and be honest in your estimation of what you can do. Be realistic in your offer and keep your word.
Realistic expectations
Optimistic people start companies. While this trait works as an engine behind growth and success, it can lead to unrealistic commitments to pay bills. Or it can lead to negotiating terms based on potential business that has yet to be acquired.
As an owner, you are probably the driving force in building relationships with potential clients. Your past accomplishments may bolster your confidence to land new customers, but until you have them, a cautious approach benefits debt negotiation. Base what you promise on what you can deliver, not what you hope to have in the bank.
Consider how your own situation is partly caused by people in the same situation as you are. If your customers are slow in paying or not paying at all, figure this into your plans. In addition, look at ways you can help them begin to repay you on extended terms in the same manner you seek them for yourself.
Checklist
After you prioritize and evaluate your expectations, analyze the fluctuations of income month by month. Be careful not to agree to the same amount each month if your revenue is consistently affected by seasonal factors. Once you've got things flowing again, use any additional money that you hadn't expected to reduce the outstanding debt.
Seek additional work for your company to increase the cash flow. It may also be a time to consider the hard task of cutting your staff. When these steps don't work consider getting professional help.
About Emerge180
Emerge180, a national firm based in Tampa, Florida, has been helping businesses avoid financial disaster since 1993. As experts in creditor negotiations and tax resolution services, Emerge180 helps businesses work through financial crises, and creates plans that re-position their clients for success. An A+ Accredited Business with the BBB, Emerge180 has facilitated the financial turnaround of thousands of companies…and, in so doing, the preservation of tens of thousands of jobs
Media Contact: Media Relations, Emerge180, 1-800-805-1138, [email protected]
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SOURCE Emerge180
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