If you’re receiving phone calls from a Commercial Debt Collection Agency, then you need to reduce your debts. The COVID-19 pandemic landed a crushing blow on business companies and business owners all over the world. Even those who never missed one payment date during their life are currently facing piles of bills. If you don’t want to receive phone calls from debt collectors, then you should start finding ways to reduce your debts.
Your bills come first
Of course, there aren’t any strategies that you can use to prioritize the bills that you must pay first. However, you can’t pay all your debts during a crisis, such as this one. That’s why you need to be tactical about choosing the ones that you should pay as early as possible. These include business and payroll taxes, high-interest debts, debts secured with collaterals, and debts secured with a personal guarantee. These are the ones that you should pay off first.
Collect your unpaid invoices
Cash flow issues tend to trigger a chain reaction among businesses. One company owes money to another, which causes that company to owe to another one. You need to take a few steps if you don’t want to find yourself at the end of that chain. If other companies or your clients owe you money, then you should hire a debt collection agency to take care of the accounts. Trained collection agents can handle the situation faster than your office staff members.
Loan consolidation
Do you have different loans with varying interest rates? If you do, then specialists in Debt Collection New York suggest consolidating them into a lump-sum and apply for the lowest interest rate. Of course, it depends on whether your financial institution will agree to such a scheme or not. You also need to make sure that the money you save on the interest is more significant than the amount spent on consolidating the loan.
Speak with your vendors
Finally, you should reach out to vendors and suppliers to whom you owe money. Those who weren’t ready to accept negotiations before COVID-19 may agree to them now. If it’s possible, then you should negotiate for discounts, extended terms, or payment plans. Many vendors and suppliers may have excess or aging inventory that they’re willing to sell at lower prices. While there isn’t any harm in asking, you need to be careful about your tone and the way you ask.
