- Arnon Dror is a prominent businessman in the world of international finance. He has more than 20 years of experience in working as Vice-President in many credible companies. These include Xerox, Creo Inc., Scitex, Kodak Creo Americas, and Presstek. He currently holds the position of Senior Operations Executive in Janus Technologies. This Hebrew University MBA graduate has a very impressive track record. He has been a catalyst in turning the fortunes of many loss-making businesses. In fact, the officials of such organizations are grateful for his services. He is a specialist in many complex fields. These include strategic planning, cash flow management, international taxation, internal control, ERP integration, and corporate mergers.
Arnon Dror – Is debt settlement worthwhile for entrepreneurs?
This financial expertsays small business owners need to borrow money from financial institutions to run their establishments successfully. Many of them do resort to bootstrapping to meet their needs. However, it doesn’t take them very long to realize it not enough. They have no option but to apply for commercials loans on favorable terms. Otherwise, they won’t be able to expand its market operation or acquire new equipment. This prominent financial expert further states these entrepreneurs should be able to generate enough revenues. Only then can they pay their interest and principal payments on time. Otherwise, these proprietors may start accumulating more debt than they can manage.
He further explains unmanageable debts can ruin entrepreneurs from owning small businesses. These businessmen get non-stop telephone calls from collection agencies to tell them to clear their outstanding dues. The officials of such organizations even warn of the consequences if they fail to do so. On top of this, they find it very difficult to operate their businesses efficiently. In the worst-case scenario, they may have no option but to apply for bankruptcy. This course of action can do more damage to their creditworthiness then they can imagine. This is why this professional suggests they should opt for a suitable debt settlement scheme. The point out the following two important reasons for taking this step:
- Ensure their creditworthiness remain intact
Entrepreneurs take years to build their creditworthiness in the market. Only then lenders reluctantly provide them with the funds they need to operate their concerns. However, when businessmen fail to meet their loan obligation on time, these financiers become impatient. They start asking these proprietors for their money back. Such a situation doesn’t occur when they opt a debt settlement scheme. Their creditors may agree to this arrangement because they’ll be safeguarding their business interests. In the process, these owners will also be ensuring their reputation remains intact.
- Doesn’t ruin these businessmen’s relations with their lenders
At the end of the day, bankruptcy doesn’t help anyone. Entrepreneurs find an indelible mark on the creditworthiness. They won’t be able to erase this stain for the next ten years. On the other hand, the lenders find they lose all the money they gave these businessmen. Under debt settlement, these financiers have an opportunity to recover most of it. For this, they don’t mind writing off a negligible amount.
Arnon Dror says debt settlement offers a win-win situation for entrepreneurs. They just need to look at the above two important advantages. They soon realize it is the right option to take. In the process, they’ll maintain their reputation in the market. This is what they want.