A Dozen Indicators that Say You Need a Debt Workout

I find that most small business owners prefer to wait and see what happens as opposed to "getting in front of the train" by being proactive in response to changing conditions. They're like deer trapped in the headlights of an oncoming truck, frozen into non-action... and then getting run over when a simple leap would have taken them to safety.

So, in case you're wondering if you should do a loan workout, or waiting, review the list below and check off the items you are experiencing. Draw whatever conclusions seem appropriate and then call us. We can help.

1. Inability to make loan payments, or struggling to make them. In arrears or frequently late.
2. 
   
3. Not taking a paycheck, using personal credit cards for business needs, investing retirement capital (401k, IRA)
4. 
   
5. Credit cards maxed out and in arrears, shut off and in collection, accruing 29% or higher interest.
6. 
   
7. No inventory, with gaps between shipments and production because there are no supplies or materials on hand.
8. 
   
9. Prime suppliers have you on COD (Cash On Delivery).
10. 
    
11. Many secondary suppliers have cut you off and put you either into collection or a law suit.
12. 
    
13. Not enough work to keep employees busy, many employees jumping ship.
14. 
    
15. Missing an occasional payroll or asking your people to hold their checks until a certain date. Not paying payroll 941 taxes.
16. 
    
17. No advertising and marketing budgets.
18. 
    
19. In arrears to your landlord.
20. 
    
21. Spending most of your time managing collections and juggling cash flow, receivables and payable, rather than paying attention to your business.
22. 
    
23. Sharply decreasing revenues, increasing costs and overhead.

If even one of these key indicators are occurring, you are on the downturn path. If more than one is happening in your business, you had better call us quickly, we can help.