Facing Debt Issues with Creditors
Emerge180 Helps Companies Face Credit Issues
TAMPA, Fla., July 16, 2013 /PRNewswire-iReach/ -- When your company income dwindles and debts pile up, what strategy do you use to face the inevitable debt issue with creditors? Emerge180, a national firm based in Tampa, specializes in helping small and medium-sized businesses recover from economic struggles.
(Photo: http://photos.prnewswire.com/prnh/20130716/CG41351)
"Our goal is to educate business owners on what to do when times get tough," says Jonathan Field, CEO. Reversing mounting debt involves addressing day-to-day and long term problems. Certain well planned decisions can help turn the tide of mounting debts.
Take A Clear Look At Debt
Financial recovery requires a clear look at debts. It only increases the damage to ignore diminishing funds available to cover basic needs like payroll, utilities and suppliers. As debts climb, owners need a plan of action to reverse negative cash flow and reestablish business stability.
Impact Of Cancelled Credit
Consider the effects of cancelled credit with key suppliers. If all shipments become cash only, how long will the money last? A Midwest company faced difficulties generating from the bankruptcy of several major customers. These bankruptcies caused the company's suppliers to reduce or sever their credit terms. Losing terms with suppliers prohibited them from buying materials in larger bulk, increasing their cost and eroding their profit margin. Though the owners depleted cash reserves, maxed out credit cards and took money from retirement accounts, this didn't solve the problem.
Cut Expenses
Look for ways to stem some operational costs. Where can you cut expenses? Review pricing to maintain an effective profit margin. Consider ways to minimize overtime for hourly employees. Prioritize the debts that are most important to run the business in order to channel money to the most critical creditor needs.
Effective Communication
Communicate with businesses you owe. Address the problem with your bank, your landlord and your creditors. Offer a plan to modify terms of payment to benefit both sides. Ignoring money problems won't solve them; instead it will aggravate critical financial relationships.
Return phone calls. A calm and timely response eases the way for negotiation and commitment. Creditors share your frustration. When you stay in touch, offer reasonable suggestions, and follow through, those you owe are more likely to work with you to find ways to solve the problems.
Seek Outside Help
Emerge180 worked with the Midwest company referenced above and developed a strategic plan to address its creditors issues. As a result of executing on that plan, the company was able to re-establish terms with its suppliers, pay down its debts, and return to being profitable.
About Emerge 180
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, Inc., 1-800-805-1138, [email protected]
News distributed by PR Newswire iReach: https://ireach.prnewswire.com
SOURCE Emerge180
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article