Commercial Debt Consolidation in Alberta

Do you find yourself in a situation where your company cannot keep up with its expenses? You have countless bills, suppliers demanding money, and lenders needing repayments. You can’t pay everything all at once, meaning interest rates increase, and your debt grows larger and larger.

Your initial thought is to file for commercial bankruptcy. While this offers a way out of debt, it should only be considered a last resort for your business. Instead, the team at Fox-Miles & Associates can provide commercial debt consolidation services. We will work closely with you and your company to find the best solution to consolidate your debts and get you out of this tricky situation.

What Is Commercial Debt Consolidation?

Commercial debt consolidation is a professional legal service that helps you gain control of your business debts. The idea is to take your debts and make them easier for you to manage. As a result, you won’t get absolved of your obligations, but you will be in a position where it’s easier for you to pay them off.

Typically, there are two approaches to commercial debt consolidation:

  • A commercial debt consolidation loan
  • A commercial proposal

What Is a Commercial Debt Consolidation Loan?

When business owners see the word “loan,” they get worried. Your financial troubles may result directly from applying for too many loans and having too many creditors on your back.

A commercial debt consolidation loan gets obtained from a bank or financial company to pay all your existing debts under one consolidated loan. Effectively, the loan lets you pay the individual creditors, and you only have to deal with one loan.

The benefit of this is that you have more manageable debt. Instead of dealing with multiple interest rates and fees, you have one payment per month.

The downside is that you still must pay off your debts. Commercial debt consolidation loans are often secure loans, meaning something must get used as collateral.

When Is a Commercial Debt Consolidation Loan a Good Idea?

Obtaining a commercial debt consolidation loan is a bright idea when your company owes money to many creditors. If you can’t keep up with all these payments and incur extra fees, a debt consolidation loan can stop this.

What Is a Commercial Proposal?

A commercial proposal is similar to a consumer proposal. The difference is that your proposal gets submitted on behalf of your business rather than an individual.

It is a legal agreement filed through a Licensed Insolvency Trustee (that’s us) that directly contacts your creditors. Through the proposal, we request that your creditors accept less than what you owe. Your business will pay off as much debt as possible while still being able to survive.

The obvious benefit is that it lets your business get out of debt quicker. You no longer have to worry about paying your debts, as just a portion will do. Many creditors are open to this idea, as the alternative is bankruptcy. As such, they will lose more money if your business goes under, so they will take as much as possible.

The only downside of a commercial proposal is that you must get your creditors to agree to it. It can involve much back and forth before settling on a solution.

When Is a Commercial Proposal a Good Idea?

Submitting a commercial proposal is a good idea when you cannot consolidate all of your debts and combine them. Likewise, it is helpful when your business credit is severely damaged, and you can’t obtain a commercial debt consolidation loan.

Many businesses still struggle to make repayments on a commercial debt consolidation loan as well. If this applies to your company, the best way of consolidating your debts is through a commercial proposal.

How Do You Find the Best Commercial Debt Consolidation in Alberta?

To put this another way, what is the best option for commercial debt consolidation in Alberta for your business? It depends on your company and how much debt it owes. The type of debt you have will also be essential. Unsecured and secured debt must get managed in specific ways.

Don’t worry. Fox-Miles & Associates is here to help. We offer commercial debt consolidation services that get built around your needs. Schedule a free debt consultation with us today. Given the current circumstances, we can discuss the options and determine the best approach for your business.