Business Debt Relief

Business Credit Cards?

2007-08-21T13:37:00.000-05:00

After a long blogging hiatus, here is some practical advice about business credit cards. I made a post about this same topic about a year ago, but it continues to be one of the most frequent issues I deal with as a business debt consultant. It is always good to be reminded of what to do regarding business credit cards.

If a credit card is obtained using your social security number and it has your company name on it, then BOTH you and your business are responsible for the debt. In other words, the credit card company has a hand in both your pockets.

As long as payments are made in a timely manner, it will not matter, but should you miss a payment, or be late, both your personal credit report and your business credit will suffer.

Business cards should be obtained with your federal Tax ID number and only that number.

If a card you already have has your social security number, do not add your business name. When a card is personal, you have options and federal protections against debt collectors, but business cards have no options or federal protections.

As I said in a post date June 2006:
"In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt."

If you find yourself in a difficult situation trying to handle your own business debt, while turning around your business, give me a call. Financial Technologies can help you get back on your feet and give you the time you need to get out of debt and back to business. Visit here for more information.

I hope to be more frequent with my future posts!

- TheDebtDr
http://www.financialtechnologies.com

It Could Happen to Your Business!

2007-01-11T23:39:00.000-06:00

As reported on www.smartmoney.com:

"The Small Business Administration reported that in 2005, 554,800 small businesses were forced to shut down. Whatever the cause, a downturn in the economy, a new competitor or even your own strategic mistakes 10% of the small businesses in the US shut their doors in an average year."

There is help! Although this is our story, it was written by an independent news reporter who investigated the subject. [Click here for the full story] You are not alone in your plight with debt. As we have been saying over the last few blogs, please get help as soon as you see signs of trouble. We are here if you need us for any business debt help!

- TheDebtDr
http://www.financialtechnologies.com

What Can a Business Debt Management Consultant Do To Help?

2007-01-10T14:14:00.000-06:00

Depending on when you seek help a Business Debt Management Consultant can provide survival guidance.

If you get help early, a Consultant can review your business data in an effort to nail down the root causes of your financial problems. Through the years we have uncovered many causes including poor management, dishonest employees, profitless sales, poor records, poor collections, high overhead, over-staffing, under-staffing, well... you get the idea.

If you are typical and procrastinate, your Consultant can help settle or avoid lawsuits, negotiate judgements, settle debts and help with business debt consolidation. Consulting fees pay dividends.

This is why I recommend that you find help for you and your business at the first signs of trouble. Experienced consultants can correctly analyze your situation and develop a solution that can mean the difference between saving your business and business bankruptcy. I have seen too many businesses fail for lack of guidance. Find help here.

- TheDebtDr
http://www.financialtechnologies.com

When To Seek Help with Business Debt Problems!

2007-01-09T15:25:00.000-06:00

Most businesses have a cycle of performance with ups and downs. Often you are distressed because sales are down but you know they will pick up next month. They don't! What now?

When you have to make a decision about which bills not to pay and which ones to pay or whether or not you get a pay check this week or month it's time to get some professional assistance.

Business debt management is key to a successful business. Unless you recognize your challenges early on, they will become problems that can control your time and business. Early professional help can be effective guiding you away from financial crisis that could lead to debt consolidation, lawsuits, foreclosures, bankruptcy and other serious legal and financial difficulties.

Big business can sell stock when they need money but small business does not have that luxury. As a small business owner you must be prepared to deal with business debt crisis on your own. Preparing for difficult times should include getting to know a Business Debt Management Consulting firm like Financial Technologies.

When you need advice, Contact Us. Financial Technologies has many years of experience in this field and many very real success stories that we can share about people like you recovering from debt, without turning to business bankruptcy. Don't let your debts get away from you. If you are in trouble, seek help.

- TheDebtDr
http://www.financialtechnologies.com

Web Marketing

2006-07-05T13:26:00.000-05:00

Financially Troubled businesses should review their operating, product, and sales cost. When things get tough, we tend to put out fires, but not look for the cause.

When creditors are knocking at the door, knowing how you got there is the first step to fixing things. As debt consolidation and turnarouund management specialists, we find that unless we can discover the root cause, we cannot be of much help.

Many times the cost of sales is the real problem and many times Internet Marking can be the start to correcting things. Reviewing your product items online and learning what is being done in your industry is a must. Competitors with lower costs may have lower prices and are cutting you out.

When you have your industry information, you can start thinking about products to promote. Then is a good time to review your inventory to see what sells. Don't promote losers.

Finding the right webmaster and design team is important. What you should be looking for is an open mind with imagination. Same old, same old can turn out ho-hum. You need someone to pay attention to your customers needs and to work to present them a solution.

- TheDebtDr
http://www.financialtechnologies.com

Business Credit

2006-06-21T16:09:00.000-05:00

Vendors more and more are demanding a credit card for corporate purchases vs. an open account.

When selecting a vendor, look for and support those who ship open account with 30 day or more terms. If you are forced to use a credit card to purchase, demand a 2%-5% discount for cash.

(For help with choosing a business credit card, read here)

Don't use a credit card if your business does not have enough cash on hand to pay the charges monthly and be sure to use a card that will benefit you with mileage or cashback rewards. Credit card interest is a rip off!

Consider also using a debit card and buy only what you need now! Negotiate stock up orders on open credit terms with dating if possible (i.e. 90 days).

In the the business debt relief field, we see businesses both succeed and fail. Credit card debt is the most common cause of small business failure we see today. If you want a successful business, do not carry a balance on interest charging credit cards. When forced to use a credit card for inventory, demand a cash discount.

A growing business should search out a smaller, locally owned financial institution, bank, or credit union that is interested in working with small business. Once you find such an organization, support them and develop a relationship. Small, short term loans with reasonable interest and payments for special purchases of inventory are preferable to credit cards.

Remember, if you find yourself in a financial situation that seems hopeless, get in touch with us at Financial Technologies and get the help you need.

- TheDebtDr
http://www.financialtechnologies.com

Business Credit Cards?

2006-06-05T14:20:00.001-05:00

Ever had questions about business credit cards? Here is the main thing you should know:

When you get a business credit card, tie it to your business and not to yourself! If the application requires a social security number, you are not applying for a true business card. It is, in fact, a personal card with additional liability to your business.

Why is this bad?

If for any reason, say a late payment or a default, the liability and bad reports going to the credit bureaus will go directly into your personal credit. report. This can cause all your card balances to experience accelerated interest rates.

The most frightening part is this account is no longer covered by consumer fair debt collection laws, allowing collectors to call and harass you night and day, including calls to your home, work, relatives, and neighbors.

How do you avoid this? Only obtain a business credit card with your Federal Tax ID number and not your Social Security number.

Should your card company offer to put your buisness on your existing personal card, don't do it!

In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt.

Good luck!

- TheDebtDr
http://www.financialtechnologies.com

How to Deal with Collection Agents and Attorneys!

2006-01-10T15:03:00.000-06:00

Hello again!

If your business is into hard times and you are spending more time dealing with bill collectors than customers what should you do? Hire Financial Technologies as your representative and advocate. Assign those accounts in collection to FT. Find out more at FinancialTechnologies.com

If this is not your current game plan we can offer a few suggestions.

When dealing with collectors let it be known that you may owe the debt but you understand you have rights and you will not tolerate abuse. You should also explain that it will be income from the business that will eventually pay the bill. The only way this can happen is if you are allowed to get on with business.

Don’t promise payment or post date checks. Do NOT discuss possibly available funds you have not received – always say something like check with me next week – if the collector does not find this a sufficient answer do not be pressured into making a promise.

Taking funds needed for operating expenses and making promises you don’t keep only strengthen the collectors hold on you. No matter how bad this makes you feel remember, as of now, there is no debtors prison in this country.

Committing to monthly payments can cause more problems than they solve. If you miss a payment you now have defaulted twice on the same debt. If and when you are able to pay, make sure that any agreement you have with the collector is in writing and signed by both parties. Make it clear that payments will be made as funds are available, not on a specific date.

It is helpful if you understand that collection of business debts could be described as a legal specialty just as divorce or probate. Most legal matters are always better settled out of court and this goes for the collecting attorney as well.

Don’t ignore legal demands. Settlements can be negotiated.

Business debt relief is also a specialty and Financial Technologies has the experience and expertise to do the job. When we represent you your creditors deal with us and free you to pursue business. Follow this link to find out more about business debt management through Financial Technologies.

- TheDebtDr
http://www.financialtechnologies.com

How Much Government Can You Buy for 100 Million Dollars?

2006-01-03T13:36:00.000-06:00

It is reported the banking and credit card industry spent 100 Million dollars lobbying the United States congress regarding the passage of the new bankruptcy laws.

Why do I find this so upsetting?

Because it is a one sided deal.

Although the debtor has huge restrictions place upon his ability to find debt relief in the bankruptcy courts, the creditors are not restrained in any fashion.

As per contracts sanctioned by the United States Congress the credit card companies are able to charge 29 to 30% interest on credit card balances if the debtor is late with any payment or delinquent with any creditor, no matter if that debtor has not been late or delinquent with their account. In addition, late payments and over limit fees are added without restraint.

These enormous interest rates and fees result in huge profits for the credit card companies.

There are no standards imposed on the credit grantors of the unsecured accounts that are leading so many into financial servitude. Creditors look for every opportunity to extend unsecured credit and once initiated they push to increase the debtors limits and spend large sums of money to promote the use of this easy money.

The Congress of The United States did not find it in their wisdom to reign in these gluttons. No, for 100 million dollars they all turned a blind eye to the very obvious practices of these vultures.
When the resources of a people are squandered on fees and charges and when the have nots are enticed to become haves with huge costs, we weaken our society.

This country and the individual states had usury laws that limited this type of behavior and those violating these laws limiting interest rates were classed as criminals and some even sent to prison.

What do you think the credit card companies and the banking industry will get as a return on their 100 million dollar investment? My guess it will be in the BILLIONS.

Now tell me how we as debtors will gain?----------------------

Let your elected representative know how you feel about their performance on your behalf.

House of Reps. Contact Info:
http://www.house.gov/house/MemberWWW.shtml

Senators Contact Info:
http://www.senate.gov/ and then click the "Senators" button.

- TheDebtDr
http://www.financialtechnologies.com

What changes have I seen since the new Bankruptcy laws have gone into effect?

2005-12-30T12:18:00.000-06:00

Most debtors I talk with fear they have lost the right to debt relief through bankruptcy and in most cases they may be right. Based on some of the new rules most debtors will be forced into chapter 11 instead of a chapter 7, which would lead to a complete discharge of debt . Chapter 11 is a payment plan.

As the program has been described to me the court would establish your monthly budget based on a formula, not your actual expenses. Your payment into the creditor fund would be based on the your income less the allowed expenses. The results could be a disaster. For example if your house payment is several hundred dollars more than was budgeted by the court, Tough Luck!
This could easily happen even if you have a modestly priced home, especially if your interest rate is more than the current low rate.

We have also discovered that some credit card companies are determined to eliminate your Right of Representation. These companies are refusing to talk or deal with us even though we are considered by law to be the legal representative of the debtor with a properly executed Power of Attorney.

OUR ADVICE:
Do not use credit cards for business debt. More importantly do not believe you are getting a business credit card if you are required to use your social security number or sign as a guarantor using your social security number. This type of card permits the creditor to come after both you and your business assets if you default. A business credit card is issued, using the business federal tax ID number not your SSN. Any other way it is a personal card with your business as a responsible party.

- TheDebtDr
http://www.financialtechnologies.com

I Don't Believe It! Do you?

2005-08-08T14:49:00.000-05:00

I recently heard a series of commercials for DEBT RELIEF and/or BE DEBT FREE. They claim to be able to reduce your credit card debt by 60% to 75%. One client TESTIMONIAL claimed that he was debt free in four months. These commercials also stated that the debt relief company was a “non profit” organization.

I don’t believe it! Here is why:

After 20 plus years working in the debt management field, I have learned the following:

Folks or business owners who need help with credit card debt usually owe a large enough amount that paying 25% to 40% of that debt, in three to four months, is out of the question.
Anyone who is capable of paying such a settlement as the one the commercial purported would just make payments and not risk ruining their credit.
Credit Card companies are not anxious to reduce the balance on accounts that are current or where the debtor has the ability to pay – why settle for less ( and lose the interest ) if the debtor can pay??
Don’t be misled by the term “non profit.” Non profit organizations charge fees for service and, although the organization does not show a profit on their balance sheet, salaries and commissions are paid from the income and there is no limit to operating expenses and staff income.

Getting help with past due debts is serious business and those who are in need should receive the facts and truthful answers – not some contrived pitch.

For serious (and truthful) advice and help with your business debts, please visit http://www.financialtechnologies.com/ and send us a message on our Contact Us page. We have many years of experience in this field and many very real success stories. Contact us today for the help you need and can trust!

- TheDebtDr
http://www.financialtechnologies.com

Surviving Business Financial Difficulties

2005-07-26T14:39:00.000-05:00

When a business gets in the position of not being able to pay its debts, can it survive?

Yes it can, if the right steps are taken immediately.

What are those right steps?
1. Get the most accurate financial statements you can as soon as possible. (NOW)
2. Define your debts as **secured creditors, overhead, taxes, and unsecured creditors.
3. Analyze your cash flow and determine if you can meet your obligations to your secured creditors, your overhead, and pay your taxes.
4. Analyze your sales as to profitability.

If cash flow is sufficient to maintain your payments to those creditors with the power to shut you down, then you can be on your way to recovery. If cash flow is less than needed for the basics of survival then you need to analyze your ability to increase your cash flow or reduce your overhead.

Determine to drop all unprofitable items or products and services and/or to raise prices until they are profitable. It is better to lose an account than lose your business.

These may seem to be elementary steps, but we can assure you that 99% of financially troubled businesses ignore the situation for several months and in many cases until turnaround becomes very difficult.

When you have taken these first steps, you will know your situation and can begin to develop a strategy to pay off your debts and survive. As always, if things become overwhelming, seek help from a professional debt managment firm. We at Financial Technologies are here if you need us. We have over 18 years of experience in this field and have a proven track record of success. Please view our website at http://www.financialtechnologies.com

Do not delay in analyzing your business, as this will save you a large amount of trouble down the road. The sooner you begin to get the real picture of where you are, the sooner you can get on the right track to business survival!

-- theDebtDr.

**Secured creditors are those creditors with a contractual claim to your assets, depending on your business and industry this can include contractor liens or vendor liens.

When Lawsuits Are Threatened

2005-06-08T13:02:00.000-05:00

If things are tough and you have taken all the action you can, including trimming overhead and prioritizing your creditors and if you are standing tough and using your assets to keep #1 expenses and suppliers paid, there will still be creditors who will threaten to file suit against you.

Now it is time to review your complete financial situation:

If you do not have a current comprehensive financial statement it is time to get one. Be sure to have a realistic appraisal of your assets, most especially your inventories. Review your inventories and make sure to discount outdated goods and products not saleable in today’s market.

In order to prevent lawsuits you must be able to present your financial case to your creditor in a way that clearly describes your situation. You must be able to assure them that they are not getting paid simply because you do not have the funds and based on your current condition, unless you are allowed to operate and increase cash flow, the alternative could be bankruptcy.

As Debt Management Consultants, Financial Technologies develops such a presentation for our clients and we do so using only accurate information. It works.

Most creditors, when they have the facts, understand that forcing a business to take drastic actions will not benefit them and that filing suit is costly.

If you, on the other hand, have made promises of payment that you did not keep and if you continually duck the calls from your creditors they will have a difficult time believing your situation.

Sometimes the only solution is to employ a debt management firm for debt relief and/or debt consolidation. Business debt management for a financially troubled business is time consuming and the created pressures can be debilitating.

Lawsuits can be stopped and many times the debt can be negotiated to a fraction of the original amount when a professional is presenting your case. Getting a head start on financial problems will speed recovery.

- TheDebtDr
http://www.financialtechnologies.com/

Almost Drowning in Business Debt?

2005-06-07T12:15:00.000-05:00

Are you almost drowning in business debt? Here are some suggestions to keep you from crossing the line.

First, you must analyze each and every operational cost from Wages to Office Supplies. If you are paying an employee that is not being fully utilized or not producing a profit, you must take action (Cut hours or cut the employee). Review accounts receivable and increase collection efforts, if need be. Refuse to service past due accounts without a payment and then ship C.O.D. When things are tough, everyone must get along with what you have or make do and improvise. Cutting overhead is where you start.

Next, prioritize your debts. There are several non-negotiables, as no business can survive without a source of raw materials or products, and keeping the rent paid and the lights on are also real high on the list as well. Business debt management is the key.

To survive, a financially troubled business must develop a system for prioritizing their debts. We suggest a very simple one. Create a list consisting of three sections. #1.Those suppliers and services you absolutely must have to service your customers. #2. The people you would like to do business with but can find the products or services elsewhere. #3. The creditors you will not be doing business with again for whatever reason. Keep this list available.

Debt collectors are a very important part of business today. Collecting delinquent accounts can sometimes mean the difference between profit and loss. Your creditors may realize this and have taken steps to employ some very good collectors. Keep this in mind.

Now that you have your list and you know how determined the collectors are, you must stand your ground. If you spend your resources on #2 and #3 creditors instead of #1 creditors, your troubles will grow. We refer to this as robbing Peter to pay Paul. Using today’s dollars to pay last years debts. You are in a survival mode and you must use what you have to your best advantage.

You may now realize that the acronym COD or CIA come up when you try to place orders. If it is not happening now, it will soon. It is important that you accumulate cash funds to be able to meet the COD and CIA terms for those very important products. Remember when you can’t deliver orders promptly they can be canceled and you lose a customer. Do not spend your resources on #2 and #3 creditors.

If you are continually getting pressure from collectors don’t give in and don’t make promises to pay when you are not positive you can. Unkept promises can make you out to be a liar and that gets troublesome when you really want to settle the debt. If the pressure is too much it may be time for business debt consolidation. Consult with a debt management company like Financial Technologies. We are involved with these circumstances every day and can provide the service you need or we can supply some cost free advice.

In summary, prioritize your debts, conserve your cash, don’t make promises to collectors and get help if you feel you are in over your head or if debt management is taking more time than servicing your customers.

- TheDebtDr
http://www.financialtechnologies.com/

Dear Debtor, is it your government or is it theirs?

2005-05-19T15:08:00.000-05:00

For the past thirty-five years or so, my livelihood has been influenced, if not dependent, on credit and/or creditors. During those years, the GOVERNMENT has been 100% on the side of the CREDITORS. Nearly every presidential administration in recent memory has held us down while the creditors picked our pockets.

The signal for the beating we were about to get came when congress removed interest on debts other than mortgages from the list of approved TAX DEDUCTIONS. They foresaw the coming sharp increase in the use of credit and how much we were going to have to pay. If we were allowed to deduct it, the tax revenue gleaned would be significantly reduced. You bet your boots they were not going to stand for a cut in their take.

The next step was to abolish the usury laws. Former President Jimmy Carter led the way and all our state governments followed. Their reasoning said that our laws did not provide an attractive enough income for foreign investors. What a funny joke that was! Thank you Jimmy Carter for 36% legal interest rates instead of the old 8% legal rate.

Now "They," the congress and the President, in their wisdom have changed the bankruptcy laws to make sure the middle class American does not cheat the credit card companies out of their 36% interest and their 78 dollar ($39 for late pay and $39 for over limit) penalties. Neither are we allowed to walk away from medical bills charged by bloated medical facilities who charge us 2 or 3 times as much as they charge to the insurance companies.

Their reasoning seems to be built around the following scenario – Middle Class Joe charges $75,000 to credit cards and goes bankrupt. The poor credit card companies lose $75,000, and Joe keeps the items purchased. Now Middle Class Joe starts over and, within the allotted time, runs up another $75,000 and again, files bankruptcy. Poor, poor credit card companies – Government must protect them from Middle Class Joe. This scenario is not how most middle class Americans handle their credit. By following this strict model, many hard-working people are getting hurt by the system.

In light of this fact, here is a novel approach – make the CREDIT CARD COMPANIES responsible for their actions. When we apply for a 5% (secured) loan instead of a 36% (unsecured) credit card, they sure check us out. When their greed is assisted by government regulations, they feel free to wheel and steal and draw us in to more debt.

For instance, how did you get a credit card? It was offered to you by a credit card company! How did you arrive at your card’s credit limit? The card company told you what your limit was! How did you credit limit increase? You were sent a letter of congratulations, saying your limit has increased – a new limit for which you did not ask! It is definitely a dangerous time to be reliant on personal credit, which leads me to some important credit advice in regards to your business.

My Advice:
Do not use personal credit cards for business debt. More importantly, do not believe you are getting a business credit card if you are required to use your social security number. This type of card permits them to come after both you and your business assets if you default. A business credit card is issued, using the business federal tax ID number not your SSN. Any other way it is a personal card with your business as a responsible party.

If you attempt business debt relief using credit cards, you can be starting down a path to both personal and business financial disaster. If business debt begins to become unmanageable, consult a business credit repair specialist and learn what can be done. Business debt consolidation and /or business debt resolution could be the path to business debt relief.

Bankruptcy is something a business person or an individual wants to avoid at all costs, but bankruptcy was instituted as a safeguard for life, liberty and the pursuit of happiness. Financial problems probably lead to more families breaking up than even adultery does! These changes being made to the bankruptcy affect every wage earner who has or will ever need credit. They will only benefit the lending institutions who heartlessly apply the unfettered interest rules and special charges through the authority they have been granted.

What’s next Mr./Ms. Congressman, Mr./Ms. Senator, Mr. President Bush: debtors prisons and indentured servitude? We have been there and done that – It did not work then and will not work now.

Business debt consolidation, business credit repair and business debt relief are all terms we are learning to accept and prefer over bankruptcy, but when you take away the opportunity to choose bankruptcy, it becomes more difficult to bring the creditor to the table for a negotiated settlement. Laws that favor the wealthy corporations, who have the power of choice at the beginning, over the needy debtor, who must depend on the creditor, eliminates the need for compromise when troubled times arise. Be careful in this dangerous time for personal credit and remember that we are always here if you need help with your business.

- TheDebtDr
http://www.financialtechnologies.com/

An Introduction to theDebtDr.

2005-01-13T11:47:00.000-06:00

The Debt Dr. is a name given to Bob Swartz, founder of Financial Technologies, a management consulting firm specializing in business debt resolution. Located in Texas, Financial Technologies services local, national and international clients. We have worked with many businesses from industries such as: contractors, retail, wholesale, manufacturing, import/export, trucking, professionals, high tech, and energy.

Our company goal has always been to provide direction, strategies, and negotiation skills to bring about successful debt resolution and the necessary time extensions for our clients to survive and turn their businesses around, without resorting to bankruptcy.

This year, by creating our business debt relief blog, we plan to offer some of our experience in debt management and credit repair to those who read this weblog. No matter the approach, however, our attitude toward small business survival has not changed. Your Business is important to us and we want you to know we are here if you need us.

- TheDebtDr
http://www.financialtechnologies.com/

Business Debt Relief - You can survive

2005-01-11T10:46:00.000-06:00

This is the first post in this blog concerning business debt relief and dealing with creditors, especially those involved with businesses and their vendors. I believe that there is hope for businesses to survive business debt and escape bankruptcy at the same time. Business debt is a large problem today, but there are solutions and tactics to survive.

Perhaps the most important task of a financially troubled business person is how to use current resources for the best result. A business cannot function without a product and/or customers. When cash is short and credit is drying up the first step would be to prioritize your creditors. We help our clients determine which creditors to pay and how to conserve cash for those important C.O.D. purchases. If you can’t deliver a product you can not keep a customer.

Assuming a survival mode and choosing the right defensive strategy and workout team can make the difference between success and failure, between sanity and the alternative, between destroyed relationships and happiness. If you are the financially troubled business owner you know what I am talking about!

Anyone harassed by collectors and threatened by attorneys, beat up by tax collectors, and persued by unhappy customers will not have the necessary mental clarity to focus on prioritizing creditors, protecting major sources of supply and dealing with customers. GET SOME HELP – FIND AN ADVOCATE – LOOK FOR THE BEST ADVICE

- TheDebtDr
http://www.financialtechnologies.com/