Rehabilitating or Liquidating Your Business, and Everything In-between

The effect of the credit crunch on so many businesses has had its toll on franchise operators, who have but six alternatives for relief available to them.

It has been some time since I last posted a blog at BMM!  Yes, I was rebuked by some of you who felt my blogs were advertising. In review, my blogs provided actual ‘cases’ of distressed financial situations that my organization had cured.  The process of Debt Management is available for your review at Performancesourceinc.com

Of possible interest, currently we are engaged in working with Zees holding fast food, shipping, decorative, and gift goods outlets.  In most cases the debt load results in costs exceeding sales income, and often further complicated by store leases having what has become impossible terms.   Others, for various reasons merely wish to close out their business, wanting to do so in an orderly way and at lowest cost. 

Those in trouble should be aware of what alternatives for relief are available.   Professionals know that there are but six!   Listed from most to least desirable are the courses of action one  can use to resolve debt problems.-        

• Rehabilitation. Debtors can save their businesses and pay their debts through extreme cost cutting.        
• Refinancing. Business owners can seek new terms for loans, like lower payments that can help free up capital for their business.        
• Debt resolution. If in debt, you can delay or attain a more satisfying settlement with creditors through use of an Authoritative Third Party.        
• New equity. Businesses can exchange ownership for capital.         
• Sale. An owner can sell his business, using the money to pay off debts.        
• Liquidation. One can sell parts of the business or their whole business or declare bankruptcy, which sadly will affect owners, employees and most often the debtor’s spouse.

Again, I invite your phone call, in anonymity, we can discuss your situation, and you will then have food-for-thought to assist perplexities you are facing.  Reach me, Jim Herst, toll free, 800/883- 5080.  No commitment either side, of course