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Are You Struggling to Meet the Terms of Your Business Loan?

According to the IMF, company debt continues to grow and poses a threat to financial stability. Because overall finances have improved recently, large company corporate debt underwriting standards are rapidly weakening, especially in the United States. This is a cause for concern as it could lead to irresponsible corporate borrowing and the inability to pay back debts, especially if the economy takes another dip.

http://www.nytimes.com/2013/04/18/business/global/imf-warns-of-risk-as-company-debt-grows.html?_r=0

Fro small business, we find a different story.  For small business concerns, they are struggling with the debt hangover left from the Great Recession.  Borrowing more or refinancing is usually not an option.  If you are a business struggling to meet the terms of your loan agreement, one option is to work out a compromise of terms with your lender so that you can avoid selling off assets or laying off employees. Law firms like ours will negotiate for large reductions in the interest AND principal of the business loan, settling the loans for a fraction of the balance the lender says is owed – all without bankruptcy.

In the end, it is most important to develop a plan that works. Because a loan default usually carries swift penalties (fees, higher interest rates, poor credit score, etc.), it is exceedingly important to act quickly. Consult a firm like ours to get started.

 

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.