As CEO of your optometry office, it is important for you to know more than clinical care for your patients. This role requires you to be a small business owner, and with that, have a general understanding of business and personal debt. Pablo is a finance journalist who is my guest blogger for this weeks optometryCEO blog. I hope you find his information helpful.
Pablo Garcia is an Associate Editor with Oak View Law Group. He has been writing on financial topics over the years with special focus on American and European economy. Pablo also takes interest in debt related issues and contributes articles on debt relief to personal finance blogs.
Get relief from business debts – Consolidation and other methods
Getting out of your small business debt would require you to have patience, consistent endeavor and help of a debt relief service. Before you seek debt help from anyone, you need to gather all your debt related information. This would include finding out the total amount of debt that you owe, and also all your invoices and earnings in the current and subsequent quarter. Then you need to categorize your debts into two, one which you have to pay immediately and the other which you can pay later. Now you can start thinking about how you can pay them back
What can you do to pay back your debts?
The few options available to you are:
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Debt consolidation loan – Your small business can use a Small Business Administration loan for the purpose of debt consolidation. This is a good option for you if you can negotiate a lower rate of interest on your debt consolidation loan. In order to get a SBA loan for this purpose you would require a total of all the current debts owed, a collateral such as a property, business asset or personal asset and so on, the ability to pay the principal as well as the interest amounts, a working and realistic business model and an ability to show that the money will produce working capital for up to seven years. you can consolidate up to 10 years of debt with some loans.
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Small business loan – You may approach any commercial lender or order to get a private business loan or an SBS loan. The information that you need to provide for this is same as that of debt consolidation loan written above along with a sound business plan.
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Commercial debt counseling – This option is same as that of personal credit counseling. However, these are usually handled by professional debt relief companies which specialize in dealing with business debts and would probably be able to handle the situation best. The commercial debt counselor with access to your current debt and set up a budget for you depending upon how much you will be able to pay. The debt counseling agency will also act as an intermediary and negotiate new credit terms, that is, lower the interest rate of the debts that you owe.
All the above three mention methods are ways to get relief from your small business debts. proper application will lead to effective results.
