Wall, NJ Business Debt Lawyer
Eliminate Business Debt With Cerbone Law Firm
Business debt is a familiar matter for all business owners, no matter their
size or industry. If you are some who has created your own business, you
understand the difficulties and demands of remaining profitable throughout
the ups and downs of changing economic times.
You know that the one element that needs to be controlled in your business
is your financial obligations. These obligations can become more than
difficult when personal or market stresses, such as those we have currently
experienced in our country, put your enterprise and your livelihood at risk.
Providing Business Debt Relief for 25+ Years
If you have accumulated bills that you no longer have the resources to
satisfy at this time or in the future, you need answers and practical
solutions. At
Cerbone Law Firm, you can work with a Wall, NJ business debt attorney who has been providing
solutions to business owners for
more than 25 years.
Our attorney is a Board Certified Business Bankruptcy Attorney who has a thorough understanding
of business operation, debt restructuring and management, and debt relief
options for business owners. We can help you explore your legal options
in this matter to allow you to make the best decisions for your business.
Need help with business debt management in Wall, Toms River, or the surrounding
areas? Discuss your case in a free consultation with our attorney. Call
(732) 402-0088 or
contact us online.
Ensure That Your Business Debt is Properly Managed
Business debt generally is a useful method for getting your business underway.
Business debt can even have some benefits such as creating tax savings
on the interest you pay.
However, debt must be properly managed so that it does not become a liability.
This can happen when too much of your revenue must be used to service
your debt as opposed to reinvesting in your business.
Should various issues arise that decrease your revenue, whether temporarily
or more permanently, your business can become overburdened with debt.
Business revenue can dip for various reasons, such as late-paying clients,
unsuccessful marketing strategies, poor business planning, poor management,
or economic conditions such as the 2020 pandemic business lockdowns.
How Much Debt Should a Company Have?
A debt ratio is used to describe the financial health of businesses --
the ratio reveals if a company has loans and how its credit financing
compares to its assets. Whether or not a debt ratio is “good”
depends on certain contexts -- the current interest rate, the company’s
industry, and more.
Typically, debt ratios of 0.4 or less are considered “better”
while businesses with a debt ratio of 0.6 or higher means that it will
be more difficult to borrow money. However, even though a low debt ratio
may suggest that a business is worthy of credit, it may also mean that
investors will not be interested in purchasing stock from a business that
has a low debt ratio. This is because a low debt ratio may limit the return
that can be passed onto shareholders.
How To Get Rid of Business Debt
Without proper management of business debt, your enterprise can ultimately
fail which is why you may need professional legal help in managing or
reducing it to avoid failure.
Various strategies can be used to handle business debt that has gotten
out of hand. These can include:
- Reviewing and reorganizing your budget as an initial step in creating a
plan to reducing or eliminating your debt
- Finding ways to reduce expenses and cut costs to increase your revenue;
this can be done through negotiation with suppliers or finding alternative
less-expensive resources or by the process of elimination of certain expenses
that can implemented without harming your business
- Consolidating your debt, such as through a line of credit or business loan
that makes debt repayment simpler, easier, or less expensive
- Restructuring your existing debt through negotiations with creditors or
lenders; you may be able to lower interest rates, extend terms, or work
out other terms that are more favorable
Where the above options fail, you still have choices, such as selling your
business, taking on partners who wish to invest in your business, or filing
for bankruptcy.
The type of bankruptcy you file will depend on your situation, such as
whether you are a sole proprietor, partnership, LLC, or some other type
of corporation. You may be eligible to file for a
Chapter 7,
Chapter 13, or a Chapter 11.
