Business debt reduction helps business owner avoid a business loan and Chapter 11 bankruptcy. The corporate turnaround achieved by Debt Free League saved his company from a creditor lawsuit.
San Diego, CA (PRWEB) July 08, 2011
For Gomez, doing business in San Diego County hadn’t been pretty. Post the financial crisis, businesses in the southern California region bordering Mexico have suffered from a ten percent unemployment rate,low consumer spending, and some of the nation’s highest food and fuel prices. Gomez' import and export company also inched to survive another casualty of the economic downturn – the Mexican economy.
His company lost business profits since the housing crisis when Mexican exports to the U.S. declined from $234.6 billion in 2008 to $184.9 billion in 2009. Gomez, who is generally paid in Mexican pesos, also felt the resulting drop in the Mexican peso exchange rate against the U.S. dollar.
Hemorrhaging on funds, he desperately searched for a business loan. But, he hit another stumbling block. Banks wouldn’t lend his company money for working capital or a business debt consolidation. Some banks had stiffer lending standards. Others were unwilling to take on more small business debt.
According to a report by the U.S. Small Business Administration's Office of Advocacy, bank lending to small businesses fell $15 billion in the first quarter of 2011. It shows that banks are still uncertain about the economy.
"I applied for a business loan to the same major banks that received billions in federal bailout money. But, none of them wanted to help me”, declared Gomez.
Running out of resources, he was forced to default on his largest corporate credit card account. It wasn’t long before a collection law firm was assigned to collect the outstanding $144,000 balance.
Fearing an imminent lawsuit, Gomez considered Chapter 11 bankruptcy. But, the legal and court costs would have cost his company tens of thousands of dollars that he didn’t have.
Not acting quickly, the legal collection activity would intensify and the ramifications could be catastrophic. The creditor could try to seize his business assets and eventually force his company out of business.
On a tip, Gomez called Debt Free League, a debt reduction company that specializes in commercial debt restructuring for small to mid-sized businesses.
The debt relief company was empathetic to his company’s situation and quickly mobilized to work out a settlement agreement with his creditor.
Gomez adds, “I am very impressed with Debt Free League. After several years of hearing debt collectors calling daily and trying to make us feel guilty of something that we didn’t create, they handled our business debt in a fast and cheap way. It was the circumstances that created our problem and they were very helpful in understanding and convinced the bank to accept what we could pay. We feel very pleased with their work and I will recommend other friends when they have similar problems.”
Late this June, Gomez had much reason to celebrate. Fortunately, Debt Free League negotiated a $33,000 repayment of the six figure commercial debt with his creditor. His agony and stress is finally over!
About Debt Free League
The provider of the Debt-to-Freedom Plan aids small businesses facing financial challenges to restructure an affordable repayment of creditor lawsuits, judgments, and a variety of business debts including, corporate credit cards, commercial loans, vendor contracts, personal guarantee business loans, and corporate leases. Their toll-free number is 1-800-213-9968. Spanish assistance is provided by their affiliate, Libre de Deudas.
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