Debt Consolidation vs Debt Workout

Debt Consolidation vs. Debt Workout

When faced with unsupportable debt, small business owners look anywhere possible to obtain relief and save their business from financial disaster. They scour the internet for answers or speak with trusted advisors and most frequently get one of two answers: either pursue a debt consolidation or pursue a debt workout. Often these terms are used interchangeably, but they mean very different things. Both options can be useful tools, however, they can also be very dangerous ...

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When Creditors Attack Your Clients with 9-406 Notice

When Creditors Attack Your Clients

The Article 9 Section 406 Notice

Your cash flow could be frozen tomorrow, today, now, when an aggressive creditor serves your clients or customers with a demand letter pursuant to the Uniform Commercial Code (UCC) Article 9 Section 406 (“9-406 Notice”). Said creditor can and will assert in the 9-406 Notice that your receivables, your cash, is their rightful property and insist that all funds are redirected to them.

Seldom do business owners ...

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MCA Default – Payment Plan Post-Default

MCA Default – Payment Plan Post-Default

With the dramatic surge in calls we have received related to troubled Merchant Cash Advance loans, it’s time to set the record straight on an issue that we frequently run into.

Upon defaulting on your daily payments owed to MCA creditors, you will most certainly encounter the aggressive, harassing collection techniques employed by the industry. Rude text messages sent to your cell phone, threats of criminal action, and the use of fake caller ...

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Merchant Cash Advance Loan Default Protection

How to Protect yourself during a Merchant Cash Advance Loan Default

Recently Second Wind Consultants has seen a large influx of business owners overburdened with merchant cash advance loans and other forms of high-interest short term financing. Instead of one large monthly payment, these multiple, often daily, payments are strangling cash flow of an otherwise “stable” business. We have well-received articles on Defaulting on a Merchant Cash Advance Loan that have been well-received.

The most common profile is a ...

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How Business Partner’s bankruptcy affects joint debts

How Business Partner’s bankruptcy affects joint debts

What Happens to Our Joint Debts?

When creating a business with a partner, few entrepreneurs truly understand how that act intertwines the financial positions of the partners, especially when debt is involved. No one ever thinks about this when business is going well or at the formation of the partnership, but what happens if your business is performing poorly or your business partner files bankruptcy? Where does this leave you?

Many owners ...

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How to Improve Credit Score – Second Wind Consultants

 What Can You Do to Improve Your Credit Score?

Easy steps to rebuild your credit fast

Many of our clients come to us with very poor credit scores. This is a symptom of the small business owner leveraging everything they can to keep the operation running, including their personal credit.

While it is important to note that in the vast majority of SBA workouts, personal credit is not impacted, our clients are typically dealing with a variety of ...

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Defaulting on a Merchant Cash Advance Loan

Defaulting on a Merchant Cash Advance Loan

In the years leading up to the 2008 financial crisis, small business owners had a consistent source of short term capital, their home equity. Rapidly rising house prices allowed them to borrow against their homes and put the money into their company to buy more inventory, fulfill a purchase order, hire more employees, etc.

Then things changed. The 2008 financial crisis crippled home equity nationwide and tightened lending standards. Business owners in desperate ...

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Can a Creditor Take My Retirement Money?

Can a Creditor Take My Retirement Money?

When faced with reduced revenues, increased overhead, and other market forces that put pressure on the cash flow of small businesses, many owners liquidate their personal assets and invest them into their business. They liquidate stock accounts, cash savings, sell other assets to raise cash, and even forego a paycheck. It is their passion and their determination that leads them to believe that they will get that returned money and more once ...

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How Does Debt Cancellation Income Affect Tax Return

How Does Debt Cancellation Income Affect Tax Return

So you’ve settled all of your debts, paid off your creditors (some for pennies on the dollar), and now you’re able to walk away and completely put your debt issues behind you, right? Not so fast! Debt cancellation income or income from debt forgiveness is something that must be analyzed early on before you begin a debt settlement negotiation.

Many people don’t realize when they settle an outstanding debt, and the creditor ...

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