How to turnaround your failing small business & stop
SBA loan default
If you are like many small businesses, you eventually hit a financial
roadblock. It may be because of the economy or because your customer's
needs have changed. But while you are struggling to survive, you
are not only dealing with cash flow problems but also facing SBA
loan default. If this is your case, you are not alone. Hundreds of
thousands of small businesses all over the country apply for and
get new SBA financing every year. And the majority of these will
go out of business during their first five years. Facing SBA loan
default is common.
So what should you do about it? Should you just default and not
pay back your loan? After all, the SBA or Small Business Administration
financially backs up all SBA loans through the bank. The bank stands
to lose nothing, so why should they pursue you?
The
3 vital factors you must know before filing for business bankruptcy
Choosing a Debt Management Program "Warning: DO NOT Begin any Debt Management Program, UNLESS the Company You Choose Meets these Six Criteria:
In fact, if these six criteria are not met, don't even get your hopes up...
1. The company has been in business for over one year.
If 9 out of 10 new businesses fail within one year, why would you want your financial future dependent upon the success of a brand-new business?
There's been an explosion of debt management, debt settlement, debt negotiation and credit counseling companies in the past 1-2 years. Check to see when the company you're looking at began operations. BEWARE of brand new companies that will ask for your business today, yet will be out of business by this time next year.
2. The company's Reliability Report with the Better Business Bureau is both listed and free of unresolved complaints.
Check here and watch out for companies with a long list of complaints: www.bbb.org
Look at how long the company has been in business and contrast that against the number of complaints the company has had. It's very rare for a company to be in business for very long without getting any complaints, although some have done it. Pay close attention, however, and RUN from any company who's only been in business for a short time yet has a list of complaints with the BBB.
If a company does have complaints, be sure they are resolved. Ask the company about the complaint and trust your gut when you hear their response. Is it genuine and understandable or do they sound defensive like they are covering something up?
3. The company requires complete information from current statements BEFORE ever giving you a quote.
The Debt Consultant / Counselor / Specialist requires you to provide all current statements for your debt accounts before quoting you a monthly payment amount, length of program or estimate of how much you can reduce your debt.
Beware of anyone who gives you a quote without thoroughly researching your account statuses, creditor names, balance transfer, cash advance and large purchase activities, minimum payment amounts and interest rates FIRST. This is the surest sign of a company who is only out for your initial fees and either has no intention or ability to service your accounts after you sign up.
4. The company is working for you, not your creditors.
In whose best interest is the company looking out for? Better make sure you know! If you ask a bankruptcy attorney what your best option is, what do you think you'll hear? Of course: bankruptcy. But is it really best for you, or best for the attorney who gets paid a healthy fee and never suffers the consequences of the bankruptcy filings that you must live with for the rest of your life?
What about the Mortgage Banker or the Credit Counselor? Think they work for you? Think again...
5. The company is focused on helping you find the right solution for your situation, not forcing you into the only solution they provide.
Is it possible for a company who only provides a single solution to provide you with unbiased guidance in making such an important financial decision? Maybe. But is it likely? No way. There's a trend in financial services that a few companies are finally catching on to, and that is focusing on a client's needs and meeting those needs, instead of trying to "put a square block into a round hole."
Many companies specialize in a single solution and they are indeed the best at providing such a service, but how do you know that's the solution that's best for you? Who do you go to for guidance in deciding what's best for your situation? Look for a company who can provide any solution you may need. Find a company whose focus is finding your best solution, instead of fitting ""their solution"" onto you.
6. The company has real results, a solid, proven track record and plenty of actual clients who are raving fans recommending their services.
Take some time to read testimonials, if they are offered at all. Ask yourself if they are genuine. Listen if you can. Look for a company who can show you examples of what they do, proof of the results they claim and plenty of people to refer to who have experienced the company's services.
About the author:
Jesse Niesen is the COO of STARTOVERTODAY.COM, a Nationwide Financial Solutions Company solving financial, debt and credit problems for clients nationwide. Jesse has led STARTOVERTODAY.COM in helping thousands of people resolve over $20,000,000 of unsecured debt since the summer of 2002 - without any complaints to the BBB. His team of Financial Strategist offer debt management consultations to help you make your best decision for immediate debt relief and long-term financial success. They offer all options available to you without bias, including debt consolidation, debt reduction, debt elimination, credit counseling, bankruptcy, debt settlement and more! Call toll-free 1-800-251-1991 or visit www.startovertoday.com to become DEBT FREE and to have your financial problems solved today!
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The
3 vital factors you must know before filing for business bankruptcy
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