Corporate financial consultants can negotiate with commercial landlords to reduce rent or lease payments; extend installment credit terms; re-negotiate existing contracts for better profitability; and find funding sources or investors to take over outstanding promissory notes or lend much needed capital. Corporate debt elimination agencies will also collect outstanding monies and delinquent debts owed to debtor/owners. If this is done the business might be able to stay out of Bankruptcy.
In order to prepare for fiscal management modification instead of a bankruptcy filing, debtor/owners should gather up-to-date files, including accurate customer account records, payroll records, federal and state income tax returns from at least three years prior. A listing of past due creditor accounts, banking and financial statements, vehicle expense reports, and inventories would also be helpful. A financial balance sheet is like a fiscal blueprint of a commercial enterprise. Listing assets and liabilities, profit and losses, and income and expenses will give the business debt restructuring company a true sense of the debtor/owner’s fiscal situation. Financial management agencies can easily assess where companies are losing money or need to cut costs by reviewing a profit and loss statement. Creditors’ names and addresses, account payment histories, and telephone numbers are also necessary for the agency to negotiate delinquent account settlement or reduction. Commercial debt settlement agencies must also be given a legal right, sometimes using a bankruptcy attorney, to represent debtor/owners in negotiating and corresponding with creditors. Once agencies have contracted with debtor/owners and begin the restructuring process, creditors are prohibited from contacting debtor/owners directly. All communication is handled through the agency.