Restructure Business Debt with a Commercial Loan Workout

Morris County Debt Settlement Attorney for Business Debt Solutions

Many small businesses face financial difficulties at some point. However, your commercial debts do not necessarily have to force you to close up shop. While it is easy for business debt to become a burden, especially if there is a change in the market, you have many options besides Chapter 11 bankruptcy or Chapter 13 bankruptcy. A commercial loan workout can restructure the business debt to help you save your business. It allows you to manage what you owe through creditor negotiation, business loan settlement and loan modification.

Are you struggling to pay back what you owe and stay in business? If so, then a Morris County debt settlement attorney can help you negotiate with your creditors through a commercial loan workout. You may try to speak to your creditors on your own to help solve your debt problems. However, having a lawyer on your side shows the bank or lender you are serious about finding solutions to your debt. If a loan workout is not the best solution for your situation, then a debt settlement attorney from Ast & Schmidt, P.C. can help you find another alternative.

What is a Commercial Loan Workout and How Can It Help with My Business Debt?

A commercial loan workout is a comprehensive restructuring process that usually involves all of your creditors. It can include one or more business debt settlement solutions. Generally, commercial loan workouts are a good way for owners to stay in business after a temporary setback or unexpected problem. In other words, if your business is making money, but not quite fast enough to pay off your outstanding debts in a timely manner, a commercial loan workout may be a good solution for you.

During a commercial loan workout, you and your debt settlement attorney will negotiate with your creditors. In the end, your creditors know that they might not get their money back if you cease business or file for bankruptcy protection. They want to be paid. Thus, they have incentive to work with you to find a way for you to stay in business and pay them back, even if it takes a little longer.

What Does a Commercial Loan Workout Involve?

The ultimate goal of a commercial loan workout is to restructure your debts so you can keep paying them while saving your business. Depending on your financial situation and how many creditors you have, you may end up using several business loan settlement strategies during your loan workout. These may include:

  • Loan Modification. You may be able to renegotiate the terms of some loans, including interest rates and loan terms. This can then lead to lower monthly payments and fewer fees or penalties.
  • Forbearance Agreement. Are your cash flow problems temporary? If so, your creditors may allow you to suspend payment on your debts for a set period of time.
  • Debt Settlement. Sometimes your creditors will accept a partial cash payment in return for the forgiveness of the remaining loan. This is of use only in specific circumstances, however. It also does require that you have the money or liquid assets to pay the lump sum quickly.

The commercial loan workout process is flexible. You can generally negotiate any part of your loans, to a certain extent. However, your creditors might try to alter your debt agreements in their favor. For example, they may ask you to sign a personal guarantee or transfer some of your business assets to them. A commercial debt settlement attorney on your side can tell you when the creditor’s offer or terms are not in your best interest. This can then can save you from possibly years of stress and even more debt.

Contact a Morristown Debt Settlement Attorney for a Free Consultation On Commercial Loan Workouts

If you are struggling with commercial debt, a New Jersey attorney from Ast & Schmidt, P.C. can review your case and explain your options, free of charge. Every case is different. However, a commercial loan workout may help you save your business and get your finances back on track. Call our Morristown law office or contact us online today to schedule a free consultation with one of our debt settlement lawyers.