1) Run and Hide - If you want to have any hope to save your business, the worst thing you can possibly do is stick your head in the sand and ignore the phone calls and letters from your lender. It's certainly unpleasant to deal with people whose job it is to shut you down, but avoiding them isn't going to make it any better. If you don't want to deal directly with the bank, engage an SBA workout expert to represent you.2) Start Selling Equipment - Hey, this ship's going down, so why not clear some cash while you can, right? Here's why: Your lender most likely has a claim to your business assets, so if you sell the business assets without the banks blessing, you open yourself up to fraud allegations from your lender. The guy you sold the stuff to won't be too happy either when the bank shows up and yanks the equipment from him.3) Claim Doom and Gloom - Many borrowers think that if they can convince their banker that things are truly awful with no hope of recovery, the lender will take pity and offer them assistance. Not true. If a lender thinks your business has no chance to survive, they will move quickly to foreclose and get judgments granted against you and your business. The lesson here is to just tell like it is....don't over-sell your need for assistance, but at the same time don't sugar coat it and make promises you can't keep. Just tell the truth.4) Make Deals With The Devil - Some people are so frantic about the possibility of losing their business, they'll sign up with the first workout firm that is willing to promise them the moon and the sun and the stars. Watch out for wolves in sheep's clothing. NOBODY can guarantee a successful workout. NOBODY can legally convince the SBA to lower your loan amount while letting you stay in business (only bankruptcy courts can do that). If someone promises you a deal that sounds too good to be true....well, you know the rest.
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