Second Wind Consultants’ Debt Elimination Strategies begin with a focus on secured bank debt, SBA guaranteed loans and Merchant Cash Advances (MCAs) because all of these are secured by assets and backed by personal guarantees, creating a stranglehold on your business. The power of the secured position is universally understood; as a result, business owners tend to work hard to keep current with these commitments for as long as possible.
Nonetheless, the harsh reality is that unsupportable business debt leads to some parties taking a loss. It’s unavoidable, and the losers frequently tend to be the unsecured vendors. This creates an ethical dilemma for business owners who value doing the right thing. Sometimes, however, the money just isn’t there to make that honorable path possible. In cases like these, a reorganization with Second Wind Consultants is the most ethical move a business owner can make.
Here’s why. Paying the debt back is impossible: the numbers don’t lie. Doing nothing will ruin the vendor relationship entirely. Undergoing a reorganization, on the other hand, preserves the business operation and allows the vendor to write off the bad debts quickly without wasting resources on futile collections processes. Best yet, the vendor retains an income stream, as they are now able to do business with the new entity.
When the alternative is expensive collections, bad debt and the loss of a client to business failure, it’s clear that a reorganization is a better way to make the most of a difficult situation.