Most small businesses are financially cyclical to some extent, with some days, weeks, months and years better than others. Although good financial planning can lessen the impact of economic downturn, many businesses do experience some level of financial hardship at one time or another. These times can be especially difficult if the business owner becomes uncertain of his ability to make a monthly payment to a secured lender.

There are ways to deal with cash-flow problems as they apply to secured lender obligations. It is important to put them into perspective by way of a timeline. Usually the inability to pay is not an unforeseen occurrence discovered on the day a payment is due, but rather is foreseeable at least 90 to 120 days in advance. This is generally the most crucial time period and is referred to as "pre-default".

The biggest mistake small business owners tend to make during the pre-default period is ignoring the imminent financial tidal wave because they unreasonably believe that a miracle correction will set things straight. However, if the issue is acknowledged quickly at the outset, there are more options available to correct the situation. In addition, pre-default solutions are generally easier to impose and less costly than after the "tidal wave" hits.

Our attorneys can help you to avoid complex, costly, formal, and public bankruptcy proceedings when financial hardship arises.

Individuals who are overwhelmed with personal debt may opt to file a Chapter 7 bankruptcy. As your counselor, our legal team can help you determine if this is the best course of action or if there is a better way to turn things around. We can also relieve you of those embarrassing and hurtful collection calls and help put you on the path of financial health.

• Construction project loans - Regardless of the sophistication of your financing commitments, we will provide the appropriate construction loan documentation and expertise for your deals, including projects involving multi-income, historical, and new market tax credits.

• Purchase money financing - You need to document and secure the financing of various business assets through a perfected first priority purchase money security interest, whether as a standalone initial credit facility, or in conjunction with existing credit to third party secured lenders. We can help.

• Asset based loans - Whether you are providing asset based financing to fund ongoing working capital needs, machinery and equipment, or commercial real estate, we can assist you with properly documenting and securing the necessary credit facilities.

• Capital equipment leasing - When your financing commitment includes a capital equipment leasing component, we can provide you with the tools to successfully complete this portion of your overall loan package.

• Workouts, including dispositions of businesses and asset portfolios - Lenders sometimes encounter borrowers with troubled credit. We can provide you with the necessary tools to complete a successful workout, and where necessary, a timely liquidation of both real and personal property collateral.

• Regulatory and compliance matters - Sometimes you need timely answers to specific questions about regulatory and compliance questions in connection with your lending practices. We'll help clear up your confusion.