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Facing high levels of debt as a small business owner 

On Behalf of | Dec 2, 2022 | Business Law

There may be a multitude of scenarios in which a company might face prolonged periods of financial unrest. While issues with debt can take a toll on any type of company, it could be even more daunting for small businesses, especially those that lack the financial backing of a larger entity. Small business owners in Maryland who encounter high levels of business debt might be left in search of guidance on their available options for relief and how to choose a path that best aligns with their needs. 

Addressing the situation 

When it comes to small business debt, the available options for relief may vary in each situation. Experts indicate that in some cases, business owners may have the option to negotiate with creditors and such negotiations could provide relief through reductions in payment amounts or an extension of the time one has to pay debts. However, this process might not always prove fruitful in every scenario. 

Experts also indicate that business owners who struggle with financial strain may also consider exploring their available options for bridge financing, but this could only be a short-term solution. It could also be beneficial to examine the company’s financial situation and determine if there might be ways to cut down on expenses or improve profit margins. While selling certain business assets could also help provide aid during dire financial straits, this might not always be preferable, or even possible. 

Business debt relief 

While outlets such as bankruptcy may also be a viable path with which to seek relief from the trials of business debt, preparing to make such a major financial decision can be a stressful task. Small business owners who encounter similar issues and wish to seek guidance in addressing their situations could consider retaining the services of an attorney early on for guidance. A bankruptcy attorney in Maryland can evaluate a client’s needs and goals and assist in preparing a strategy to reduce or eliminate debts via the proper paths.