In today's bleak economy, that means there is considerable room for negotiation. Others will offer goods or merchandise in lieu of cash, says Ho. When a fellow says, 'It ain't the money but the principle of the thing,' it's the money. Few companies set out to incur debt without the intention of repaying it. For debtors who wish to pay but have insufficient means, there appear to be a few options.
Some companies simply renege on the amount owed.
Others ask that the debt be forgiven in part or in whole. Still others restructure the debt with a different payment and time scheme. And a great many companies actually do repay the debt in full, often by implementing cost-cutting measures and working capital management that wrings cash from their operations. That may not be the best approach. According to the ECIC's commissioner Thomas Yiu, the solution is not to cut off credit, but rather to protect against losses through better credit management.