The real estate entrepreneur had come to realize that she was in a real bind, for which there seemed few positive outcomes. She felt boxed in from all sides and was behind in payments to several lenders. Her income was way less than planned and the price of her main asset had declined.
The lenders knew her situation and her plans for recovery in fine detail. They had gotten the information in writing. But they were showing little cooperation in her need for business debt relief at this stage and simply demanded to get paid, immediately. Precisely how these funds were to materialize was of no interest to them.
A lender will obviously expect to get paid according to the terms of its contract. No doubt about it. It will only accept a compromised settlement when it knows that it cannot be repaid in full. We believe that, with adequate information, the lenders will come to this realization and we will be able to cut the necessary deals, once we have the ability to do so.
The client is smart. She has that upbeat, resilient quality so typical of a true entrepreneur. She understands that where she is now is no reflection on where she will be in twelve months, or five years.
It’s all in the head. Rather than going to pieces, she is proactively looking at new strategies to bring in cash and is open to doing anything possible to minimize the damage to herself and her creditors. Given the lessons learned in this situation, she is poised to join the legion of successful business owners who have gone through adversity in their way to wealth-building success.
As with so many other of our clients facing financial challenges, it is extremely satisfying for us to be able to support her in this endeavor.
Tags: 8, business debt blog
great post as usual!