On Small Business with Ralph Coker: 08.19.08
Make a plan to pay back business debt
Q. My business is behind on its debt payments and is getting further behind. What can I do to get out of debt?
A. This is the second of a three-part series to answer the question. This article will cover the preparation of the settlement proposal to creditors.
The settlement proposal includes a hardship letter, payment plan, cover letter and business history profile.
Creditors are human, too, and may be willing to extend their normal settlement terms if you can demonstrate your hardship. Write a personal hardship letter to explain all the bad things that caused the business to fall behind on payments. Back it up with numbers including financial information from the tax return and financial statements.
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