Table of Contents
Types of Debtors
The first step in determining whether you should offer a lower payment to settle a business debt is to identify which type of debtor you’re dealing with. There are different categories of debtors that may apply, as follows:
- A customer that will do anything to avoid paying.
- A customer that owes several debts and pays sporadically.
- A customer that typically pays on time but is having financial trouble.
Your settlement strategy may change for each debtor as well as other factors such as the nature of the relationship and the amount of the debt owed. Join LegalShield and a small business debt provider lawyer can guide you through the settlement process with advice on the best course of action.
Repaying Business Loans
Running your own business often requires taking on loans to finance your growth or expansion. In turn, being responsible for your company’s financial situation means understanding the types of loans available and understanding the terms of repayment—and what you can do if you can’t repay them according to the agreement.