Tips for Small Businesses in Collections or Default

If you run a small or medium-sized business and are facing debt collections or default, though the current situation might seem bleak, there are thankfully a number of debt relief and modification options available. Even businesses with seemingly insurmountable debt and limited cash flow have possibilities available for consolidating and refinancing.

Below we will take a look at a few tips for small businesses facing collections or default and review the debt relief and modification options available through National Credit Partners.


What are the Risks of Ignoring Debt Collectors?

 

While ignoring debt collectors may seem tempting, doing so can result in a number of negative ramifications for a small business. Let’s review some of the more common risks involved for companies that ignore debt collectors.

  • The debt may not actually be owed: One of the main reasons to respond to a debt collection notice is to determine whether or not your business actually legitimately owes that debt. In most cases, a debt collection notice will be accurate, but there are occasions where mistakes are made. If you receive a debt collection notice that looks foreign, contacting the source to determine where it originated can help clarify whether or not it’s actually owed. Moreover, discovering that a debt notice has been wrongly sent to you is something can typically be cleared up fairly easily by simply providing a bit of basic company information.
  • A lawsuit could follow: Not only can debt collectors file lawsuits against businesses that fail to respond to collection notices, but if you proceed to also ignore a lawsuit, the agency pursuing the collection could obtain power over your business’s funds. Money in company bank accounts as well as company owner paychecks could be garnished to settle a debt in some instances.

 

  • Your credit could be damaged: Ignoring debt collectors never magically makes the money owed just disappear. What it almost certainly will do, however, is negatively impact your credit score. In turn, this can make it much more difficult to secure a loan or any type of credit in the future.

 

  • Your debt could increase significantly: Interest also doesn’t magically disappear, which means that if your business’s debt is legitimate, ignoring it could simply make it compound (sometimes exponentially depending on whether you took out an actual business loan or a merchant cash advance).

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My Business is in Collections/Default, What Should I Do?

 

One of the most important things to remember when in collections or default is to address the issue immediately (i.e. not ignore it). But perhaps more importantly is to create an actual strategy for determining what debt relief modifications are available that can help your small business achieve both short-term and long-term financial goals that get you back in good standing with creditors. This typically involves securing the services of a debt relief or modification company that can handle the responsibility of dealing directly with lenders and creditors.

 

At National Credit Partners, we are not a debt collection company. Rather, we help small and medium-sized businesses like yours identify customized debt relief and modification solutions based on your specific situation or hardship.

 

If your business is distressed and requires immediate short and long-term debt relief or modification solutions, National Credit Partners is here to help get you back on track the right way.

 

At National Credit Partners, we help small businesses like yours identify debt relief and debt modification solutions as soon as possible. If you’re struggling to obtain traditional financing, we can identify unique options created specifically to your small business’s needs which allow for immediate cash flow, but also get your company on the path towards traditional financing approval in the near future.

We’ve successfully helped small businesses facing significant financial challenges – including defaults, collections, and legal actions – achieve permanent debt relief solutions. In fact, many of our distressed business clients were able to qualify for traditional financing (like SBA or term loans) after graduating our program. 

With our years of experience and proven results, the National Credit Partners team of dedicated professionals is here to help your business find a debt relief solution that is tailored to directly meet your needs, challenges, and future goals.

Call us today at 949-272-9083 or fill out the contact form below to arrange for a free and no obligation consultation with one of our skilled team members. We’ll review your company’s specific circumstances thoroughly and discreetly and utilize our decades of experience and proven results to help you achieve your financial goals. 

Don’t settle for an unproven debt relief professional that could potentially make your business’s situation worse through inexperience. Choose National Credit Partners, the company offering direct, strong, and proven relationships established with countless creditors. We’ve helped companies achieve the financial solutions they need to make fresh starts, and can do the same for your business by identifying the personalized debt relief option that is right for you. 

Complete the form below and one of our team members will reach out to you immediately.  

If you are one of the many thousands of companies struggling with high interest business loans, call us today for a free consultation. Just taking the first step in talking to an expert can start relieving stress. And once you talk to a debt help specialist, you will see that there is hope.

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