Experian, one of the three leading credit reporting agencies, announced the credit worthiness of business in the retail sector is 12.7% lower than the national average. Beyond these findings, retail businesses scored lower in paying bills beyond the contracted terms, higher in delinquent debt, and higher in bankruptcy rates.
Retail businesses typically spend more money to expand inventory for the holiday shopping season. Poor holiday sales performance could drive some retail businesses into further delinquency and debt. Compounding the issue, the majority of business debt is personally guaranteed against the business owners. This means in the event of default by the business, someone is personally on the hook to repay the creditor.
If you are a business owner in debt trouble, contact a qualified debt settlement attorney. A qualified debt settlement attorney can fight for the business’ interests and work to settle outstanding debts for a fraction of the balance owed. A debt settlement attorney can also defend lawsuits against the business and the personal guarantors.