I live in the Philippines. I have an internet cafe shop business for 3 years now. It is still not in its full operational capacity. I have been getting loans and have accumulated 1million 500 thousand pesos equivalent roughly to $30,000. I want to get out of this situation. Selling the business won’t even pay half of the debt.
How do i pay all these people i owe? I am so desperate already and getting depressed more and more each day.
Well it looks like the business is not a success. The money you have been borrowing has continued to fund a business, that for whatever reason, does not make enough money to pay its obligations.
I know how depressing financial problems can be. The way to resolve this problem is to take some action. Here is an outline for a plan of action I would suggest.
- Create a comprehensive look at your income and expenses for both you and the business.
- Make an appointment to go in and meet face-to-face with your lender if you can. Take the income and expense reality with you to show them.
- Present the reality of the situation to the lender and see if you can’t negotiate an adjusted repayment plan that allows you to meet the payment based on your income.
- If they are unwilling to make any adjustments to the repayment terms you may have to come to terms with the fact that your business is not profitable and insolvent.
- Unfortunately the Philippines has a horrible set of bankruptcy laws that provide little relief and are grossly outdated. If you need to find current legal relief that might be available to you, contact a local attorney to ask for legal advice.