Build Trust And Reliability- Face Your Creditors
The last thing that creditors and money- lenders appreciate is being forced under the circumstances to deal with an ungrateful debtor. Agreed, you have incurred heavy losses in your business and that these are surely not one of your sunny days. So how can you emerge from this crisis without tarnishing your reputation. Well, avoiding your creditors like plague or giving them a cold shoulder treatment is certainly not going to earn you some extra brownie points. So what are the options that you are left with if you honestly want to repay those bad and doubtful debts?
The first lesson is to take the bull by its horns. This would mean that instead of acting indifferently with your creditors make them aware of your problems so that some of the more considerate creditors will be willing to extend the time for repayment. Instead of avoiding phone calls, make sure to reassure the money lenders that you are not a fraud who has coolly digested all their money and that if they are patient enough to wait you will make a conscious effort to pay them back their dues. This approach might help in resolving the issues more amicably without giving rise to any nasty situations.
If the creditor is a head- strong person who will not allow you a second more then you might have to let your other debts wait and first deal with this creditor.
You can approach your bank from which you carry out your regular business transactions and ask them to lend you money. This wont be too difficult specially if your past records with this bank have been favorable enough to portray you as a good paymaster. Besides you can take help from other banks as well.
If you cannot afford to pay the rent of your existing house then consider shifting to a smaller one whose rent would be affordable. This way you might be able to save some few extra bucks.
You can make use of those possessions that you might not need immediately such as a landed property, or any other valuables that can be mortgaged against a loan.
Last but not the least you can declare insolvency or bankruptcy. This might not be a very good idea because though it may provide you with instant relief from your current debts, yet in the process of doing so you will be destroying your company’s as well as your own credibility for the next ten years.