Dealing With Financial Stress in Business - Debt Settlement Is Always an Option

In this economy financial stress is common in all sizes & types of businesses.

A business that has completed well historically suddenly is not doing so well, & businesses that could still do well get bogged down in financial stress.

When your business has an income slump or is hit by unplanned for taxes, refunds & various threats of insolvency then whole staff can become upset. Vendors or debt collectors call constantly demanding payment immediately, etc. The staff dealing with these things (probably the most critical person being the owner of the business) get so upset they don't produce what they normally would, but unless they produce they won't make any more money & in the event that they don't earn more money they'll never get out of the financial stress. It is a sticky circle.



What makes this even worse for the small business owner is that it not only affects his or her business, it also starts affecting home life . The owner becomes so stressed they has trouble sleeping, works longer hours, spends less time with relatives, snaps at the partner or the babies for "no reason". All of these things appear to be part of the territory when you own a small business that is under financial stress.

There's fundamentally steps involved. Both are equally important & it the case could be made that neither will work without the other step being completed as well.

How do you break the cycle & dig your way out?


The remainder of the team gets in to production. If production doesn't increase across the board then the person dealing with the financial demands is going to have a very hard time of it because there is no funds to work with. The business owner/manager ought to know what needs to be done to get production increased and the business' goods or services in to the hands of his customers and funds being made. Even if past successful actions stopped working for some unknown reason at first, the manager's first job is to find out why that is and come up with a bright idea to get things rolling again. You make funds to the degree that all of your staff are productive and getting the work done that they are supposed to do. NOTE: They key word here is productive not busy.

Compartment the finance stress. Assign somebody who is not critical to your business production as the person responsible for handling all demands for payment, refund requests, etc. This might be the book keeper or somebody like that. You could also outsource this function as part of a business debt settlement program, depending on whether or not the particular debt settlement company you work with offers the service. One time you have somebody assigned to this job, the drill is very simple. Set up a special phone number or extension for collectors to call. Make it known that this is the only number they ought to call and no else in the company will be able to handle their requests. If you are using a business debt settlement company this number would be that the debt settlement company provides. This way there is a single person handling the calls who can keep the demands at bay and the stress off the production lines of the business. What he/she tells the callers depends largely on the particulars of the business situation so I cannot spell it out exactly. The substance of it would be "We're going to get you paid, sit tight and let us get the show on the road and you'll get your funds."


Technological obsolescence requires a great of creativity to resolve. This would be part of step two above. Creativity is likely to be seriously stifled by the finance stress so step one is vital to freeing management up to tackle the issue.

A business debt settlement program can help in another way. By negotiating settlements with the business' creditors, the debt settlement company reduces the amount of money needed for the business to dig out of financial stress. This is important when the reason for the financial stress is due to larger and more difficult to control factors such as broader economic conditions or one's products becoming obsolete due to changes in know-how. These things happen. But a business can survive them if both of the above steps are completed.

In cases of financial stress on any kind of business, debt settlement is always and option and might make the difference between surviving the slump or failing miserably.