Informal proposals, also known as debt management plans.These are agreements done with your creditors in order to amend or compromise debt repayments terms. ABDC Credit Solution can assist you in making an informal proposal to your creditors. The benefit you can get from this type of proposal is that it will have a lesser affect on your credit rating and will significantly lower the cost compared to a formal proposal under the Bankruptcy and Insolvency Act.
An informal proposal is a direct negotiation done with your creditors with the goal of arranging payments that are lower than the total amount you are owed.It is not a typical situation to deal with creditors. It needs to be documented and executed properly. Informal proposals are an effective alternative to consumer proposal or bankruptcy and it is really important to assess your situation properly to help determine the right solutions. If you need help in crafting a good informal proposal, you can call us today and we will guide you through every step of the process.

The Essence of Informal Proposals

Informal proposals often provide benefits if there’s only one creditor used or several creditors. ABDC will approach your creditors with a reasonable settlement offer with the view to avoiding filing a formal proposal or bankruptcy.

These kinds of proposals are a specialized strategy to cut debt and are not good for everyone. Hence, before you enter any informal negotiations, it is very important that you take time assessing your unique situation to make sure that this strategy for debt restructuring will suit all your needs. The settlements reached with creditors range from 10 percent to over 85 percent and will depend on your financial situation.

To help you understand the whole picture better, you need to know the benefits you can get from an informal proposal. The benefits you can get with Informal Proposals are the following:

  • You can choose the debts when you do some negotiations.
  • You’re not required to file under insolvency and bankruptcy act.
  • Still, you can be a director of any incorporated business or company.
  • Debt settlements are often reported on R7. You can start rebuilding your credit as soon as you want.
  • Debt consolidation entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Most debt consolidation loans allow you to borrow money against the value of your home’s appraised value to consolidate your debts into one monthly payment and get out of debt quickly.
List of debt consolidation loans types
  • Home Equity Loans
    By borrowing against the value of your home minus any previous mortgages, a home equity loan provides you with a fixed amount of money over a fixed amount of time usually at a fixed rate.Home Equity Line of Credit:. Allows you to borrow money against the value of your home minus any previous mortgages up to a pre-approved credit limit with variable interest rates.Second Mortgage Loans: As the name suggests,a second mortgage loan involves taking out a second mortgage on the appraised value of your home in order to free up cash to pay off your debts.
  • Corporate Debt Restructuring
    At some point, every business owner will reach that bend in the road where operational or financial challenges will try to destroy everything that they worked for. This is when confusion starts creeping in and all you have in your mind are questions that you don’t know the answers to.

Will you look into your credit line? Will you get your debt restructured? Or will you just close your company and go on with your life? You will read different pieces of advice no matter where you look but it is always best to bring in an expert.

ABDC Credit Solution offers an exceptional experienced debt restructuring and ongoing business development team that can bring clarity to your business challenges.  Our team is composed of professional consultants who will be more than happy to help your business in resolving its performance and debt issues to allow your business to grow healthier and wealthier.

Why Choose Us for Your Corporate Debt Restructuring?

ABDC Credit Solution has worked with clients whose companies have gone through different levels of hardships – from natural disasters to family issues. There sufferings are brought about by various reasons but at the end of the day, all of them are in jeopardy of losing the business that they have worked hard for through the years. Not only their business, but also their livelihoods. However, all of them have this strong desire of saving their companies and this is where ABDC Credit Solution can help.

  • Corporate debt restructuring – With our corporate debt restructuring services, you will be able to enjoy great benefits:
  • Increased cash flow – Your short term debt can be easily converted to a manageable plan that can work for long term and ease cash flow strain.
    Affordable and fixed payments – You can forecast your cash outlay and manage it better.
  • Avoid the unnecessary legal fees – You can settle your debts with no need to hire and pay for lawyers and legal advisors.
  • Improved quality of life – ABDC Credit Solution will be the one to deal with the collection agencies, creditors and attorneys so that you can go on with your activities and create more revenue instead of hiding from these people.

Corporate debt restructuring is not for everyone but it may be the answer for you. If you would like to pay all your creditors but you find it hard to establish settlement terms that you can afford, ABDC Credit Solution’s program is your perfect choice. Just so you know, what we give you is not a loan.