4 Recovery and Restructuring Solutions Used By Small Businesses

By Keith Tully

In some situations a bit of creativity will be needed to facilitate a turnaround and get your company back to operating in a profitable manner. However, more often than not you won’t need to be an innovator to save your business, you’ll just need to consider some of the commonly overlooked recovery and restructuring options that are applicable and readily available:

1. Using Assets as Leverage to Obtain Financing

Even if you have poor credit you may be able to obtain financial assistance by using some of your assets (i.e. – equipment, inventory, real estate, etc.) as collateral in obtaining approval for a secured loan. However if you were to default on such an agreement then the lender would potentially have the right to seize the assets you used as a security, so keep that in mind before you put your home on the line.

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The Predicament of Personal Guarantees For Business Credit

So you have your new corporation or LLC formed… great! Now the next task on your list might be to build credit for it, but how do you do that?

In many ways, building credit for a new business is much harder than building personal credit. With the latter, there are a plethora of entry-level cards for students and people with no credit history. Unfortunately, you will be unlikely to find starter cards like that for businesses.

Pre and Post Recession
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