Financing a Troubled Business

Not all companies will go up for sale with a clean slate. Sometimes sellers need to unload debt ridden or money-losing businesses. Working out the business financing for these businesses can prove to be more difficult than finding business financing for rising companies. However, that is not say that the task cannot be done.

When the debt of a business exceeds the asking price of the buyer, the seller might find themselves in a difficult situation. In order to sell the company in spite of difficult finances, the seller has to either convince the buyer to pay more or negotiate with creditors. If he or she can get the creditors to accept less than the full amount owed, then he or she might be able to alleviate some of the financial stresses without having to deal with bankruptcy.

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