Running a successful small business these days challenges even the best entrepreneurs. Between tighter labor pools, smaller cash reserves and sticky inflation increasing costs, margins are becoming smaller and concerns are growing stronger. When you try to borrow your way through this downturn, you are met with higher interest rates and tighter lending standards. If you find yourself in this situation, experienced professional advice could become your savior.
As margins are pinched for other businesses, they must squeeze their debtors to maintain cash flow. This situation requires creditors to become more aggressive in collecting their receivables and loan agreements. However, we have worked with hundreds of businesses facing situations similar to yours to successfully work out a resolution that benefits the business.
If we are unable to resolve these collection activities, we have the experience and skill to file a chapter 11 bankruptcy to give your business enough breathing room to survive. A recent change in the Bankruptcy Code makes such restructuring more streamlined for small businesses than prior practice. You can pay your most important creditors through a plan based on the income your business generates.
Small business bankruptcies increased by 41 percent this year compared to the same period last year. Your best bet to avoid or survive bankruptcy depends upon the advice you receive. If you are interested in obtaining this advice, contact us. We give second chances on Second Street.
Blog authored by attorneys James Jones and Robert Chernicoff