Business Restructuring for the (less than) 100 Employee Firms

Business Restructuring Assisting Small Business Owners During Worst Economy in 70 Years

Author: Jennifer Sloan

A supposed recovery is underway, yet small business owners are seeing debt levels increase and accounts receivable slow.

  • Historically in previous recessions, what created jobs in a recovery was small business. It is widely accepted that the under 100 employee business is the lifeblood of the economy.
  • Economists are now in a panic. We are not seeing the growth necessary for a true recovery to take place. Small businesses have become the Achilles heel of the U.S. recovery by limiting growth and job creation.
  • With REAL unemployment rates hovering around 17%, the hopes of recovery have all but faded.

Business Restructuring can provide solutions for small business owners who are now suffering through this lackluster recovery. While there are plenty of law firms, collection agencies and banks contacting business clients demanding payment, who does a small firm have to turn to for assistance.

In today’s economy, companies throughout North America are experiencing an increased number of cases where the business owners are under siege. From slowdowns in accounts receivable, credit line decreases which affect working capital and a general pessimistic outlook for the future, the number of business owners in trouble are growing.

Ensure that a Business Restructuring firm has the certification and credentials behind it when considering working with a Consultant. Legitimate Business Restructuring Firms will not charge your company any upfront fees and earn a fee only in the case of a successful resolution. In most cases, businesses are able to reduce debt levels by 30-80% and maintain ongoing relationships with their existing creditors

Keep in mind there are many “debt settlement” firms that exist. These types of businesses cater to consumer credit cards and usually require substantial fees, escrow accounts and policies which risk a consumers credit rating. Legitimate Business Restructuring firms DO NOT provide any form of consumer debt settlement whatsoever. It is suggested that any consumer seeking to reduce their personal debt to contact local non-profit credit counseling agencies found in most communities.

Certified Licensees contact businesses daily who are seeking ways to reduce and restructure their debt levels with existing creditors. The account receivables are slowing and in many cases are disappearing. AR is lifeblood for small business and quickly turns a once viable business creditor into a non-paying business debtor.

Typical Small Business Restructuring Cases:

  • Business Operating from $250k-$50 Million.
  • Company owes to multiple Creditors/Banks.
  • Accounts Receivable has slowed.
  • Morale is down, employees are concerned about becoming laid off.
  • Some cases have resulted in legal proceedings. A certified Business Restructuring Consultant puts a stop!
  • Bankruptcy or the closure of the business is not the course desired by the Client, yet they are facing the real possibility of this becoming a reality.

If your business has been affected by the continuing economic troubles we see in the economy, allow a professionally certified Business Restructuring Consultant provide you with local support. A legitimate firm would charge No Fee is there isn’t a successful resolution of a business debt portfolio. In most cases, businesses are able to reduce debt levels by 30-80% and maintain ongoing relationships with their existing creditors

In addition, highly valuable financing options through unique lending opportunities may be provided. Direct contacts with multiple lenders throughout North America who have a myriad of financing options can provide much needed cash flow at a time when there are little options.

Typical cases include small businesses operating up to $50 Million per year. Due to short cash flow, slowing AR and non-payment from clients, the business owner is suddenly facing their own angry creditors, in the form of Attorneys, Bankers and Creditors direct. This has lead to a cancerous morale problem within the clients organization as employees are aware of the impending problems, which in many cases may lead to lay-offs, bankruptcy or even the closure of a company.

With recent turmoil in the economy the typical case loads cover a wide variety of industries-

  • Commercial Real Estate
  • Business to Business Acquisitions
  • Inventory Based Business Models
  • Automobile Suppliers
  • Equipment Manufactures
  • Factories/Assembly Plants, etc.

The Business Restructuring Consultant acts as a confidant. They will provide services to the company which include Business Debt Mediation, Restructuring and offer access to little known yet fast and effective lenders to provide working capital and other financing.

Cases usually last from 1-3 weeks and the Consultant is heralded as a savior of the business. In many situations, business owners and their respective Creditors will maintain their ongoing business relationship and continue to trade, offering both sides the ability to prosper for years to come.

The Creditors have multiple resources at their disposal to collect a debt: Collection Agencies, Law Firms, in-house Counsel, etc. Now, the Debtor Business Client has someone on their side to assist in the restructuring of such debts, maintaining the viability of the clients business, saving both sides significant resources in time, money and aggravation, and in most cases, the seasoned Business Restructuring Consultant can maintain the valuable business relationship.

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About the Author

The consulting and Licensee programs at Valcor Arbitration Services have been instrumental in helping small businesses survive since 1994. Valcor provides financial services, business restructuring, mediation and capital acquisition to companies that have cash flow problems. The overriding goal for Valcor is to save business entities and prevent litigation. Valcor takes tremendous pride in the ability to save small businesses and employees jobs.

Valcor trains individuals to provide this business in their local city as part of the Valcor Licensee Training Program. Please inquire for details. (877-2VALCOR ext. 130).

Due to the economic contractions across all commercial industries, Valcor is currently focusing on expanding their Licensee network worldwide. Since 1994, Valcor has periodically implemented high level training and it’s Licensees have consistently provided consulting services to business owners throughout North America, The Caribbean, and the United Kingdom.

Valcor does not provide any form of debt settlement or consumer remodification programs. For assistance with personal debt, please contact your local non-profit credit counseling service.

877-2VALCOR (282-5267).


About Valcor

David H. Sussman M.A. is CEO at Valcor Arbitration Services, a business restructuring, mediation and capital acquisition firm.Valcor works with small businesses to save them from bankruptcy and litigation. David is also one of the principal trainers for the Valcor Licensee Training Program. This program provides independent licensees with training, support and intellectual property to use Valcor's proven systems to help struggling local businesses throughout North America. Valcor has been featured in multiple news outlets including The Los Angeles Times, The Denver Post, The Chicago Sun Times, CNN Money, and dozens of other publications. David is a featured guest on multiple business radio programs, including Money Matters and Business Today. Born and raised in London, England, David emigrated with his family in 1977. He is a father of 2 sons, an avid hiker and a pianist.
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