Practical Advice for Business Owners During COVID-19
Has this COVID-19 Pandemic turned your debt facility and business financing into a whirlwind of uncertainty? At a time like this when there is widespread concern over the short term future of your business, one of your first legal and financial priorities should be to take a hard look at your current debt service and business financing situation to determine whether you need to restructure your current debt service or balance sheet, search for other debt or equity partners or take other action. Your goal should be to position your business financing to be flexible, adaptable and be able to meet your immediate business needs in this ever changing landscape.
You should not go through this process alone. You should engage a knowledgeable and competent attorney to work alongside you to ensure that any restructuring and financing is right for you and your business and puts your business in the best position to meet the challenges that lay ahead.
The attorneys at Beress & Zalkind PLLC are providing safe remote consultations and have worked with a multitude of lenders of varying sizes to meet client needs. Feel free to call us at 718 513 3588 or send an email to firstname.lastname@example.org.
Are you suddenly finding yourself weighed down by business debt that you cannot meet due to COVID-19?
We are urging clients who find their business suddenly weighed down by debt that they cannot service due to current conditions to consider other alternatives to bankruptcy for many reasons. Bankruptcy attorneys do not always disclose the intricacies of next steps when counseling business owners regarding filing for bankruptcy. Bankruptcy is an expensive, difficult and time consuming process where oftentimes the business and its owners lose control of the business operations. Upon the filing of a bankruptcy petition, the business is put at the mercy of a third party consultant (who has likely never met you or set foot in your business) and the Court and is given far sweeping rights by the Court to dictate various aspects of your business. This consultant is paid handsomely and paid first from the business funds. Alas, there are other more practical, cheaper and efficient options.
A knowledgeable attorney can sit with you and review your contractual obligations such as your lease, mortgage, SBA debts, vendor contracts and other debts (secured and unsecured) to determine legal standing and default consequences. The attorney will then speak with creditors on your behalf to begin the process of restructuring and negotiations to strategize and prepare a plan that will enable your business to operate as a going concern while taking control of your debt. This process may involve review and negotiation of complicated loan and financing documents as well as negotiating lease and contract amendments or modifications.
Going through this process with a knowledgeable and skilled attorney will enable you to proceed aggressively and competently in a professional manner to tackle even the most complicated debt obligations to put your business back on track. In many cases, restructuring and negotiating your debt through your attorney will enable you to maintain control over the process and save the business money.
The attorneys at Beress & Zalkind PLLC are providing safe remote consultations to meet our clients’ needs. Feel free to call us at 718 513 3588 or send an email to email@example.com.