Paying Loans Until Your Business Dies Is Not The Honorable Thing To Do

You are going to pay your loans until your business dies. Apparently, you think it is better to go down with the ship, lose everything, spend your savings, stop taking a paycheck until “poof!” you’re gone, then attempt to do the debt workout or probably file a bankruptcy after all is lost, as if this is the honorable way to go. I understand, most small business owners want to pay their bills. Absolutely. No one wants to do a debt workout. I get that as well. No one wants to go into default. But paying until you can’t pay any more, bringing an end to your business… is the right way to go?

I think not.

Why would that be the right thing to do, to pay when it means self-destruction so everyone gets nothing and all is lost? Presumably, you think this is the responsible thing to do because you made a commitment and you intend to honor it until you perish. This is good?

A workout benefits everyone far more than total loss does. A workout delivers the most to the bank under defaulting conditions. In other words, the bank gets the most with the least cost to it. So, why is that bad? The business can be saved, the jobs are saved (though maybe fewer) and the small business owner does not have to go into bankruptcy and lose everything. Yet, you prefer the idea of paying until all is lost to everyone and the business fails rather than doing the debt workouts and saving the business. Why is that? You think it’s more honorable?

I think those that believe this have it wrong. I believe a workout is the most honorable thing one can do and if that requires one to go into default to save the business then so be it! This is a righteous plan–the right plan, the best plan.