If you are running a business you probably have debts, just like every other entrepreneur, from Donald Trump to the Mom and Pop grocery down the street. And like most other people, this debt probably consists mainly of unsecured business loans. Unfortunately, just like many other people doing business in today’s economy, you may be falling behind in these payments. If you are receiving threatening letters, late notices together with hefty fees and other unpleasant phone calls and letters, it is time to seek professional advice about dealing with your unsecured business loans. The best way is to check for advertisements that are listed in the newspapers or online. There are many debt consultants who have links to the major search engines, and you will be sure to find a reputable and experience financial counseling service here. Once you come up with a name, it is certainly a good idea to look them up with your local Chamber of Commerce or ask colleagues if the have had experience with one or the other of the agencies.
When you have made an appointment with one of the credit counselors, it is to your advantage to bring as much information about your finances with you and to be certain that it is organized in the best possible way. Not only will this save time, which equals money, but also it will allow the counselor to get to work sooner. If every thing is at hand, he or she can provide debt relief in the form of Business Debt Consolidation or Business Debt Settlement within a few days. With a disorganized portfolio, the process can drag on indefinitely.
The first thing that your counselor will want to know is if whether the largest amount of what is owed is in secured or unsecured business loans. This is very important since most reorganization and even chapter 11 bankruptcy petitions only address unsecured debt. Don’t really know the difference between a secured and unsecured business loan? You are not alone; many proprietors do not know the difference and how it affects their financial obligations.
Secured business loans are those that derive from owning an interest in real property or belongings, such as cars and machinery that act as a guarantee toward the repayment of the loan. This information should have been outlined in the original loan agreement that you signed, so it is important to have this with you at the first meeting with the consultant. The loan agreement will specifically state, in the cases of a secured loan, just what property the secured creditors have the right repossess in the case of loan default. If you have a mortgages on the building in which your enterprise is located or the enterprise vehicle financed or leased, reorganization will not be applicable to these business loans.
However, the good news is that nearly every other kind of financial obligation is the result of unsecured business loans such as those regarding credit cards, electricity and heat bills, and supplier’s bills can be subject to the debt reorganization process. Loans taken from banks, savings and loan companies, and credit unions, especially those used to start up the venture, or prime examples of unsecured business loans, and they are what your counselor will want to work with in resolving your issues. Even if these accounts are seriously over due, have gone into collection or have already resulted in creditor obtained judgements against you and your company, the consultant will be able to work with the debt and your creditors to bring relief from worrying and distressing unsecured business loans that need to be repaid.
Source by James A Banks
