Cash Flow through Debt Collection

Generating cash flow through new business has its own challenges. But an important part of cash flow for any business operation is collecting debts owed.

However, for companies that are in debt they, too, can convert short-term debt into a manageable long term plan.

The Small Business Administration reports that approximately 40,000 businesses a month close their doors or file for bankruptcy. These companies didn’t have a solid and proven plan to get out of debt; all they had were hopes and dreams.

If more than 30% of your payables are over 90 days old, you are taking chances with the future of your company unless you have a realistic plan to satisfy your creditors. Without a practical and affordable plan your company can sink deeper into debt, and it may only be a matter of time before creditors seize your assets and put you out of business.

Debt restructuring is not limited to credit cards, loans, and secured and unsecured lines of credit, but can also include equipment and commercial leases, liens and judgments as well. During the past several weeks, I've learned about a performance-based company called Commercial Debt Solutions based in the Los Angeles area.

Commercial debt restructuring is not for everyone. However, a structured program could work if you want to pay your creditors but are unable to establish affordable settlement terms.

Commercial Debt Solutions offers a free consultation for companies in Southern California either by phone or in person. For more information call 1-877-684-3631.