FAQ

What is company debt?

Company debt refers to the money owed by a business to its creditors, including loans, unpaid bills, and other financial obligations.

What are the different types of company debt?

There are several types of company debt, including secured and unsecured debt, short-term and long-term debt, and revolving and non-revolving debt.

What are the consequences of company debt?

High levels of company debt can negatively impact a business’s credit score and ability to obtain credit in the future. It can also lead to legal action from creditors and potentially result in bankruptcy.

How can a company manage its debt?

A company can manage its debt by creating a budget, negotiating with creditors to modify payment terms, consolidating debts, and seeking professional financial advice.

What are the options for dealing with excessive company debt?

Options for dealing with excessive company debt include debt restructuring, debt consolidation, debt settlement, and bankruptcy. It is important to consider the advantages and disadvantages of each option before making a decision.