Business Debt management myth: Defaulting on a business loan
For many, business debt management and restructuring is a mysterious process. Even those experienced in matters of debtoften have untrue beliefs about business debt management, as debt can be a highly emotional matter for both borrowers and lenders.
However, understanding business debt management can go a long way to helping borrowers get out of debt and helping credit companies collect more of the money that’s owed to them. If that sounds like a conflict of interest, read on. You will learn how our legal law center business debt negotiation can truly help both parties find a better solution to a tough situation.
Myth: Debt management companies want clients to default on their loans.
We often hear from creditors who are concerned that their borrowers are defaulting on their loans. Understandably, it is upsetting to not receive the payment agreed upon in a contract, especially if it means losing out on an investment. We do not wish this on anyone.
A loan default is not the ideal solution for either party. Most borrowers would gladly pay their creditors in full if they were able. The unfortunate reality is that things happen.
Perhaps a small business owner doesn’t receive the amount of sales they anticipated, has to pay for a medical procedure, or simply doesn’t realize how quickly the interest on a short-term loan will add up. Before they know it, they are drowning in debt and unable to find a way out.
National Credit Partners works with borrowers and their creditors to reach the best possible solution, given the reality of the situation. We believe it is better for borrowers to pay some of their outstanding debt, or to arrange to pay it off more slowly, rather than declare bankruptcy. Filing for bankruptcy stains a person’s credit history, and the lender does not receive any of the money they are owed. That’s why we help borrowers and lenders find a mutually beneficial outcome instead.
This can be a challenging process for a borrower and lender to undergo alone. Through our legal mediator law center practices, National Credit Partners work to protect the interests of both borrowers and lenders, easing the negotiation process and helping ensure a favorable resolution for everyone.
If you are struggling to repay your loan, or you have a borrower who has defaulted, get in touch with us. You don’t have to do this by yourself.
National Credit Partners | 888-766-3998