Keeping Your Business out of Bankruptcy

Jun 9, 2019 4:41:00 PM / by Matthew Debbage

How to Keep Your Business Out of Bankruptcy


Originally published in July 9, 2019

Managing your debt is critical to avoiding bankruptcy

While the number of businesses filing for bankruptcy has declined since the Great Recession, there are warning signs that this trend could quickly take a turn in the wrong direction. If that happens, savvy business owners must be prepared. 

 Research from the Supreme Court on federal court filings show that bankruptcy filings are at their lowest levels in more than a decade. However, at the same time that bankruptcies ‒ legal processes involving actors that can't repay their debts to creditors ‒ are declining, business debt is rapidly rising. In fact, the Federal Reserve's recent financial stability report shows that leveraged lending is 20% higher than last year and flags a decline in protections for lenders against default.

This is important to be aware of because debt and cash flow ‒ more precisely, the inability to effectively manage debt and cash flow ‒ are the principal drivers of bankruptcy. If you want to understand the risk of selling your goods or services to someone on credit terms, understand the credit report first.


Topics: blog, credit, business, growth, risk, Bankruptcy

Matthew Debbage

Written by Matthew Debbage

Matthew Debbage is the COO of Creditsafe Group and the CEO of Creditsafe USA. He has been responsible for Creditsafe’s international expansion across Europe, Asia, and the U.S. Matthew has been building a career in business intelligence and business credit management solutions for more than a decade and has developed global expertise along the way.

Recent Posts

Subscribe to Updates