Business Debt Restructuring Q&A

Q: Why should I retain Business Capital for business debt restructuring services?

  • We take the stress and headache of dealing with your creditors.
  • By working with a third party, you are free to concentrate on your business.
  • We can deal objectively and amicably with creditors, preserving relationships, removing the emotional element and inserting credibility into the process.
  • Reaching a settlement usually results in increased cash available for the day-to-day operation of the business.
  • Retaining our business insures that you make use of your legal counsel only when truly warranted.

Q: Why should a creditor consent to negotiate with you?
Once you have signed a limited Power-of-Attorney, the creditor will not contact you concerning the debt. They must deal directly with our firm.

Q: How long will it take to reach a settlement with my creditors?
This depends on many factors and differs with each client. We work with you to develop an understanding of your creditor relationships, your priorities and available funds.

Q: Can the creditor pursue the balance of the account once we reach an agreement?
No. We require the creditor to guarantee that the account shall be closed as satisfied. It will not be listed as a write off, but as paid in full.

Q; What happens if the negotiations are not successful?
It is rare that we are not successful in reaching an amicable solution.

Q: Does it matter if the debt has been sent to collections? What about cases where the creditor has obtained a judgment against my company?
It does not matter if the debt is in collections or has resulted in a judgment. We still attempt to negotiate a settlement.

Q: Will I be able to continue doing business with the creditor after arbitration?
In many cases, yes. We make every effort to keep relationships on solid footing. However, expect that any business will initially be on a cash-on-delivery basis. In many cases, creditors will extend credit to our client after a period of time when the client shows they are stable.

Q: Can you give me, or my company legal advice?
Our firm does not provide legal advice. We are not attorneys. We are a corporate turn around and financing company. If you require legal advice, we can refer you to separate counsel from our network of highly reputable of law firms.

Q: I manage a publicly held company. Can you provide the same service for my company?
In many cases, yes. Additionally, there may be other options available for a public corporation that are not available to private companies.

Q: Do you provide funds for the settlement if I am not able to honor the agreement?
Unfortunately, no. We negotiate settlements based upon what you’ve told us you can pay. However, we can arrange financing in conjunction with the restructuring.

Q: Why should we not just file for Bankruptcy?
We look at a bankruptcy as a last ditch option for several reasons. It is expensive, with most of the money spent on attorneys vs. creditors. It is public, rigid, time consuming and labels you with the worst credit rating. Restructuring is the opposite.  For an effective business turnaround, it is vital to preserve capital and spend time working on your business, not in court.

Q: How can I find more about Business Capital’s business debt restructuring and turnaround services?
Please contact us for a free consultation today by phone:1-888-499-4755; by email: consultant@bizcap.com; or visit our website: www.bizcap.com.