In these cases, a small business owner has two ways to deal with debt: try to save the business while attempting to settle outstanding accounts, or allow the business to fail, but with an exit strategy that minimizes the financial consequences.
Obviously, the first option in trying to save a business while managing its debt is taking money out of your own pocket and putting it into your business.
Business Loans example assumes 36 monthly payments of 2 on a business loan of ,000 at a 9.4% APR.
Not all Card Members will qualify for a ,000 loan or a 9.4% APR.
Actual savings may vary based on your approved monthly repayment amount and the repayment period you select for your American Express Business Loan as compared to the repayments you would have made on your business credit card(s).
Yet, due to the Great Recession, the last few years have been particularly difficult for small businesses that overextended themselves by borrowing too much money without the capacity to make back what they owe.
Would some of these ailing companies have been better able to avoid onerous debt by making sounder borrowing decisions early on? Nonetheless, once creditors are at the door, it’s too late to perform a retroactive financial analysis.