Small business debt advice needed

Discussion in 'Growing and Managing a Business' started by Tim1, Jun 14, 2014.

  1. Tim1

    Tim1
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    Hey all…

    In the middle of last year, I decided to open my own business. Initially it ran well, but that did not last too long. Business began to ebb off towards the end of the year, and I really do not think that I could have had a worse time with it.

    I had just bought some new office equipment, mainly computer components but a number of other things as well. This meant going into debt by about 4000 or so.

    Unfortunately, I have been unable to pay off the supplier as I had hoped because the company currently has no cash flow.

    Meanwhile, the supplier wants me to pay them 1000 per month for four months until my debt is paid. I am about to cover about 1000 or so, but I was wondering if it would be wrong to seek out a more agreeable payment arrangement.

    Until business actually picks up, I would be hard-pressed to offer anything more than 200 to 300 a month. There is currently no other debt that I have to worry about. Is there anyone who can give me some advice on how I should proceed? I really do not want to be taken to court (which may lead to the company being declared insolvent) especially over a relatively small amount.

    I have been gathering information online and found a few good sites, but I wanted to see what advice you might be able to offer. Thank you in advance.

    Considering using https://www.youtube.com/watch?v=eX6BkhohlKs – any advice?
     
  2. James Martin

    James Martin
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    If you are suffering from debts then I must say that stop purchasing new stuff and sale those things which are less important for you.That is how you can at least remove some of your debts.And if you have cash flow problems as well then do consult with your financial adviser who can insist you properly what to take steps to get out from the bad debts situations.
     
  3. Business Attorney

    Business Attorney
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    I don't think that for your relatively small amount of debt you will be able to make it economical for someone else to help you restructure your debt. You should certainly try to negotiate terms with the vendor that you can live with. The vendor obviously wants the quickest payment that is possible, but agreeing to something that is impossible for you meet does neither you nor the vendor any good.
     
  4. bmwillsmith

    bmwillsmith
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    Sometimes the hardest thing and the right thing are the same, Don't afraid to be fail. Be afraid not to try. See off line(real life) friends or well wishers surely helps us if they trust in our friends. Try to ask them and i hope you will surely get good support.
     
  5. Mark Robinson

    Mark Robinson
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    Yes I agree with him. You should talk to your creditor and take some more time to repay your debt. Ask him for settlement plan.
     
  6. SConsultant

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    Yes, talk to your creditor and take some more time to repay your debt - that would be a good solution. Make her/him understood that without sufficient income / revenue [namely running your business properly] she/he will not have any money back. Everyone loses. The goal is a win-win situation.
     
  7. atlga

    atlga
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    debt

    Hi Tim,

    I would seek an SBA backed loan. One of the purposes of SBA loans is to bail out businesses that are having problems. Get one big enough to carry you through the winter and pay off your supplier. Keep in mind you will have the same problem next year and you will have to pay off the SBA. There are a variety of loan programs. Go ahead and give your local office a call and they can help you out. (sba.gov > contact) PM me to let me know how things work out.
     

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