Running a company is not only prestige and high earnings. It also involves a lot of responsibility and risk. What if the company is indebted? It is not uncommon for an entrepreneur to seek financial assistance from a bank by signing a loan agreement.
Attractive terms of offers created especially for companies
Undoubtedly attract the attention of customers, who are not sure whether they will cope with paying off their debts. Theoretically, this should not be a problem, after all, the company makes a living.
In practice, it is different. There are stagnation, lack of demand, breakdowns or other situations that get you in financial trouble.
At some point it may turn out that further repayment of debt is impossible, because the company instead of profits begins to bring only losses. The loan agreement, however, is still in force, so the entrepreneur is left with a debt that he cannot repay. The only way out of this situation can be a company debt relief.
Debt relief for a company can mean deferring the debt repayment deadline
and sometimes it is possible to split the debt into more convenient installments or lower interest rates. It all depends on what conditions can be negotiated with the institution that granted the loan. In truly exceptional circumstances, you can also apply for debt cancellation.
Problems with the company’s growing debt also often relate to non-payment of ZUS contributions and tax at the Tax Office. Fortunately, it is also possible to split payments into installments or postpone the deadline. A taxpayer who finds himself in a difficult situation, which has been supported by solid arguments and in accordance with current law, may apply for discretionary relief.
A good solution
Allowing to overcome the far-reaching consequences of payment gridlocks from contractors, is to consider factoring and similar forfaiting. Both allow to obtain, in the worst case, part of our outstanding obligations, with the difference that the first one usually concerns domestic transactions, while the second covers receivables arising from contracts concluded with foreign partners.
As you can see, even in a difficult situation, the company has the opportunity to negotiate conditions that will allow it to get out of financial trouble, as well as to obtain other financing. It is important for the entrepreneur to rise to the challenge and to deal with this issue responsibly. Avoiding debt collection and phone calls from the bank does nothing, and can only fuel a crisis.
The same applies if the payment gridlocks from contractors cause a deterioration in the financial condition of the company we manage, and we refuse to take any disciplinary action. Gangling the company is a very effective solution, so it is worth going to a specialist who will advise you on the best way to get out of debt quickly.