What to do if your business is in financial trouble

If your business is suffering from the ongoing economic malaise, the first thing you should do
is realize you are not alone. Thousands of small businesses are suffering and scrambling to do
whatever it takes to stay afloat.
However, you don’t want to do anything that will jeopardize your future or your family to keep
your business in business, so there are two definite tactics you should avoid:
Borrowing against your home – even if you do have equity in your home, it is unwise to use
it to keep a struggling business afloat unless you are absolutely certain you can return your
business to profitability. Depending on how your company is set up, you could wind up losing
your home because by borrowing against it for business debts, you have turned an unsecured
debt into a secured debt.
Maxing out credit cards – this is a bad idea for a couple of reasons: you will likely pay high
interest rates and you are making yourself personally responsible for a business debt.
Instead, consider these other strategies:
Merchant cash advance or invoice discounting – if you run a retail business, you might
consider a merchant cash advance, which pays you a portion of anticipated receipts. If you
have a B2B company, invoice discounters will purchase your invoices and advance you up to
80 percent or more (depending on the invoice).
Engage a business debt collection attorney – if you are a B2B company that is struggling
because of unpaid invoices, engaging a business debt collection attorney can help you collect
those debts and restore your cash flow.
The Jayaram Law is a Chicago business law firm providing a range of legal services
to middle-market businesses, with an emphasis on business litigation, business to business
collections, local counsel representation, preparation and review of business transactions, and
copyright and trademark licensing.
The Jayaram Law routinely and successfully assists its clients in their business-to-
business collection needs. We take pride in obtaining payment on accounts receivables without
fracturing critical business relationships or engaging in time-consuming and costly litigation
efforts. If you need business debt collection services conducted in a professional manner,
contact our B2B debt collection law firm.