Business Debt Solutions
Having your business in Debt can be a difficult experience,
but there are positive steps you can take to get your business finances back on track.
Business Debt Solutions
Having your business in Debt can be a difficult experience, but there are positive steps you can take to get your business finances back on track.
How Debtco works
Tell us what help you need
We evaluate your situation
We negotiate for you
Generally, negotiations will take from a few days to 4 weeks to complete.
This largely depends on your circumstances. We are able to save you from 5% of the debt to as much as 95% of your original balance owing. If the circumstances are right, we can even have your debts written off.
Contact us immediately so that we can discuss how we can stop this legal action for you and then facilitate a good settlement offer. Alternatively, it is advisable to contact a lawyer to seek further advice.
No. Loans that remain under 2 months in arrears will not be credit listed, your credit will not be harmed no matter how much we save you. Accounts that are already listed as a Default with VEDA Advantage before the client engages our services will be listed as ‘Settled’ once our service is completed.
Yes. While we are involved in mediating between you and the bank, all phone calls, letters and legal action will cease.
It is seldom we are not successful in negotiations, however if we cannot save you money you have us free.
No, however in the interest of giving you a clean break from debt it is advisable to include all or most of your debts in the negotiation program.
Yes you can. You can also repair your own car, build your extension on your house and do your own taxes, but most people choose to seek help. Most people prefer to leave these tasks to experienced people who earn their livelihood as specialists in those lines of work. We are specialists at one thing only, negotiation with financial institutions. We live and breathe to save you as much money as possible from the banks who squeeze as much money from you as possible.
Use us to negotiate your debts. You can Google this topic, but be careful as some ranking companies on this topic are insolvency specialists, which is fine if you’re looking at a bankruptcy option.
The negative side to debt negotiations is that some specialists can be expensive. However, if there is a guarantee in place such as a “no win no fee” policy and you expect to save a considerable amount of money then it may well be worth it for you.
The other disadvantage is that you will need to raise funds to make the offer of settlement if your specialists are dealing with a bank or trade creditor. This means if you want to offer 20 cents in the dollar you must raise this money ready to pay when your creditors agree to the offer.
However, in the end debt negotiators will generally provide their services without the client risking their house, business, and their credit rating. Additionally, if you have the right profile you will have your debt dramatically reduce with guarantees in place and without you investing upfront cash for the service.
Debt Negotiation vs. The Insolvency Process
While your business cannot continue to operate when it has unmanageable debt – which is also known as being insolvent – there is an alternative to the insolvency process if you act at the right time. Debt negotiation could provide a solution to dealing with your business’s debts before they become unmanageable – as long as you deal with it correctly.
What happens when a business can’t pay its debts?
If your business has unmanageable debt, it may follow one of these three most common corporate insolvency procedures: voluntary administration, liquidation or receivership.
- Voluntary Administration: If a company goes into voluntary administration, an administrator will be appointed to take control. This administrator will try to either save the company or the company’s business, or put the company in a position where it can best pay off its debts, without going straight into liquidation.
- Liquidation: If the company cannot be saved by the voluntary administrator, it will go into liquidation. This will mean a winding up of the company so that it can repay debts, or part of those debts. This winding up process will be taken care of by an appointed person who isn’t part of the company.
- Receivership: Going into receivership occurs when a secured creditor (someone who has secured a debt owed by the company through a claim to company assets) decides to appoint a receiver, who will collect and sell the company’s assets to pay off the debt the company owes them. Depending on the agreement, the secured creditor may only be allowed to sell certain assets to pay off the debt.
What’s the alternative?
Before debt becomes unmanageable, an alternative could be debt negotiation. This alternative can work particularly well for businesses that are suffering temporary financial trouble. Temporary cash flow problems could be caused by illness of key performers, by bad advice or staff fraud, by making one wrong investment or losing one big contract.
But, temporary financial trouble can lead to permanent financial trouble – and insolvency – if not dealt with promptly and efficiently. Which is where debt negotiation comes in. A debt negotiator can negotiate with creditors to reduce or even waive the amount owed, allowing the business to clear their debts and continue to trade.
Why choose debt negotiation?
Going through the insolvency process – similar to opting for bankruptcy for an individual – may seem like an easier way out when you are facing a wall of debt, and all the stresses that go along with it. But while insolvency procedures may release your business from its debts, it can come with negative consequences that are more serious than you might think.
- Debt negotiation could save your business: All that hard work you put in to build up your business will count for nothing once it has been wound up. However, debt negotiation could help you get on top of your debts, avoiding the winding up process, so you and your business can continue on your journey.
- Debt negotiation could save your reputation: If your business goes into liquidation, it will affect your reputation as a business owner. By choosing debt negotiation, you could get your business back on its feet, saving your reputation. You may even be able to choose the trade creditors you negotiate with, allowing you to leave certain trade creditors to develop future relationships with.
- Debt negotiation could save you stress: As debts pile up, so does the stress. Going into liquidation however, that stress is not going to go away. Before that happens, a debt negotiator could help to reduce your stress levels by taking the emotion out of dealing with your debts. Instead of receiving harassing phone calls and worrying about how to deal with all your debt, you can employ a debt negotiator to deal with your creditors instead, with the aim of coming to a mutually beneficially agreement.
- Debt negotiation could halt legal action against you: Debt negotiation can also halt legal action against you, while you decide which steps to take next.
- Debt negotiation could save you from the insolvency process: Insolvency can result in any number of consequences for business owners, including a restriction on travel overseas, heavy costs, loss of assets, adverse listings on credit reporting, and a ban on being a company director in the future.
What’s the right option for your business?
If you want to avoid insolvency, debt negotiation could provide an alternative. Speak to a professional about your options to find out what may be right for your business.
Find out more about what Debtco could offer you in debt negotiation by contacting us today. Our experienced team could significantly reduce the debt you pay to creditors, allowing your business to continue to trade – and helping you to step off that path to insolvency.