The odds are, your small business won’t be around 5 years from now. About half of all the businesses that started this year will close their shutters within 5 years later.
Why do all these businesses fail? Both studies and common knowledge suggest many reasons. Including: changing economy, new or unanticipated competition or unforeseen disasters. As diverse as the reasons for business failures might seem, there is one common theme running through them: an inability to handle debt in a functional – and profitable – way.
So when your business circumstances change, it’s time to reorganize your debt – BEFORE things are desperate. A reorganization can:
- Lower payments & interest on existing debt: Stretch out secured loans and keep your vehicles, buildings and equipment working for you.
- Convince your suppliers to take reduced payments: letting you use your money to pay your employees, or yourself, or to grow your business.
- Avoid revocation of permits or licenses: waiting too long can cause you to lose the right to do business.
Reorganization can be the fastest way to get past a cash flow problem. Some reorganizations can take as little as one month, and the steps to quick relief are simple:
- Make a disclosure of your business finances;
- Prepare a plan to pay your creditors the way you want. (You can even change this later);
- Make your new payments; and
- Go on with the business you founded.
There are as many ways to reorganize as there are ways a business can fail. Krekeler Strother, S.C. knows this through our own experience; we’ve filed more reorganizations than any other law firm in our area. So working with us gives you the most flexible options for keeping your business going. After all, our business is keeping you in business.
David Krekeler of Krekeler Strother, S.C., in Madison, Wisconsin, devotes his practice to solving financial problems. The firm focuses on debtor-creditor and bankruptcy matters. He is a past chair of both the Bankruptcy, Insolvency and Creditors’ Rights Section of the Wisconsin State Bar and of the Western District of Wisconsin Bankruptcy Bar. He has authored numerous materials and teaches several seminars a year. In his personal time, David enjoys traveling with his wife, Mary, playing soccer, hanging out with his dog, and cooking for his family each Sunday.