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Business Bankruptcy Alternatives

Considering Bankruptcy? There may be better options for your business.

Bankruptcy should be your last option to save an ailing business.  Consider  finance restructuringdebt restructuring and other turnaround solutions finance restructuring, debt restructuring and other turnaround options to fix the problem instead.  Why? Only about 10 percent of businesses that operate under Chapter 11 bankruptcy ever recover. Chapter 7 bankruptcy, total liquidation of your business, is an even less desirable option. Besides the risk of losing your business and the stress on yourself and your employees,  a bankruptcy can be extremely expensive.

There are many misconceptions that accompany commercial bankruptcy. One of them is that it will provide companies with a new start from which they can rebuild. Unfortunately, this is rarely the case with small and lower middle market companies.” – Chuck Doyle, Managing Director, Business Capital.”

The business world is all about ups and downs. Unfortunately, for many companies, the downs often seem too difficult to get back up from. In situations of financial difficulty–as debt piles up and vendors are no longer getting paid–many business owners simply throw in the towel. Every year, tens of thousands of companies file for business bankruptcy in hopes of receiving some type of financial protection that will allow them to continue to operate. However, business bankruptcy is not the simple process it may appear to be. It can have a tremendously negative impact on a company, both in legal fees and in terms of future business relationships. Fortunately, there are business bankruptcy alternatives, including finance restructuring, debt restructuring and other turnaround options .  Bankruptcy should be your last option.

Disadvantages of Bankruptcy:

  • Expensive: all fees associated with the bankruptcy will be paid by the company, including legal fees for creditors and fees for all parties associated with the bankruptcy
  • Loss of control over your business
  • Only 10% of small and lower middle market businesses that operate under Chapter 11 bankruptcy will survive
  • A Company in Chapter 7 liquidation has a lesser chance to survive
  • Time consuming paperwork and reporting
  • Stressful
  • Risky

Business Capital offers a number of business bankruptcy alternatives.

We can help you right size, get back in the black with debt restructuring, provide a turnaround management specialist and prime your business for a new infusion of cash flow. Business Capital will customize a proactive plan to restructure your excessive business debt. Restructuring debt is a prerequisite for filing for bankruptcy and, if done correctly, can help you avoid filing at all. This process can enable your business to return to positive cash flow and afford creditors the ability to get the highest possible return. Of course, this can be difficult and time consuming, which is why Business Capital can help. We can also arrange alternative commercial financing to provide extra cash flow to get your business back on track. With over 10 years of experience in the industry, Business Capital has built a reputation as a leader in the business turnaround industry. We provide each restructuring client with the individualized attention it needs, optimizing our plans for each particular situation. Contact our experts today at (888) 499-4775 to discover the entire range of our business bankruptcy alternatives and how we can prevent you from pushing the panic button.