Be Pro-Active, Negotiate, and reduce your cash out. -
Attack the Immediate Problems Immediately
You've got to take care of the immediate threatenting problems immediately. Today's the day. Tell them you're putting a plan together and you will resolve it. Then start the plan. Then get back to them and negotiate. It's counter intuitive - stay in touch - don't hide.
Create An Accurate Realistic Cash Flow Plan
Develop a cash flow plan to determine exactly what your company's cash position is on a weekly basis. Determine an achievable, acceptable cash flow - that doesn't crush you but is respectful of the debt that will be promised based on the cash flow achievement.
Achieve Vendor Moratorium
While that is being prepared announce and introduce to your vendors your intention to deliver a clear concise plan to dig out from the hole. Let them know you'll be ready in 7-10 days.
Contact and Conduct Vendor Negotiations
Contact your vendors once the plan is complete and negotiate new payment terms and amounts your plan states.
Implement, Monitor, Adjust, Report
Monitor, update, and report. What was out of control becomes controlled.
Negotiating - You need to negotiate and manage the debt reduction process. And you have to know what you're doing, rely upon the cash flow projections and convince vendors to go along with the plan you've approved. Vendors are experienced in working with payable restructuring. Presented with a well done plan and reasonable terms, it makes sense for vendors to support and agree.
A Pro-Active Approach - Vendors don't want to do your work. If they're coming to you you're on the short end. You need to be pro-active and go to the vendors with your plan. Contact your creditors, collection agencies or attorney representatives that are assigned to the collection of your delinquent debt. You can receive immediate relief from creditors and their pressure for payment.
Cost Effective and Proven - Payable restructuring can have high success rates negotiating reductions and settlements of your debt. Done right you can expect a total cost of 60-65 cents on the dollar of your delinquent debt.