BUSINESS DEBT SETTLEMENT STRATEGIES YOU NEED TO KNOW

Are you a business owner who’s worried about mounting merchant cash advance debt, or other forms of business debt like SBA loans or credit card debt? Regardless of where you are in your journey — DelanceyStreet.com can help you. We’re a top tier business debt relief company, based out of NYC, that helps businesses nationwide avoid going out of business. Business debt settlement can feel like a vague term, but the fact of the matter is – Delancey Street can help with ANY type of business debt. We have a team of financial and legal experts, who work on every single client’s file.

UNDERSTANDING THE DEBT LANDSCAPE

Many businesses accrue debt while looking to grow. In some cases, business owners rely on lines of credit or multiple MCAs just to stay afloat. That’s common — in fact, over 70% of small businesses face recurring cash flow issues, according to data on https://www.sba.gov. Unfortunately, missing payments can trigger late fees, personal liability, or even a lawsuit from lenders. This is where business debt settlement comes into play. The goal is to avoid lawsuits, and in specific – avoid bad outcomes.

LEGAL FRAMEWORK & POTENTIAL PENALTIES

If you default on your business debt, lenders can pursue various actions against you, including, but not limited to:

1. Filing a lawsuit for breach of contract.
2. Enforcing a confession of judgment (COJ) if one exists in your contract, and is valid in your state.
3. Freezing your business accounts.
4. Damaging your personal credit if you signed a personal guarantee.

Some lenders could threaten Uniform Commercial Code (UCC) filings against your business assets. Under https://www.ftc.gov guidelines, there are also rules about fair collection practices. But remember, no lender wants you to file bankruptcy because they’d prefer to get paid rather than lose everything in a liquidation scenario. Most lenders are happy with a business debt workout that gives them their money over time, versus no money period. Depending on how much principal vs factor/interest you owe, this could impact the type of deal you get from a lender.

DEBT SETTLEMENT STRATEGIES

When you enroll in a business debt settlement program, like the one offered by Delancey Street, you’re using a mechanism to prevent financial collapse of your business. Below are a few common strategies:

1. Direct Negotiation
   Regardless of the lender you’re facing — OnDeck, PayPal Working Capital, Kabbage, or a local creditor — direct communication can go a long way. Show them how your business is struggling. Lenders often prefer revised payment plans instead of forcing you into bankruptcy. We put together a debt management plan, that aligns your interests with that of the lender.

2. Debt Consolidation Loans
   Consolidation involves taking out one new loan to pay off multiple existing debts. If approved, this can drastically simplify your payment schedule, giving you one monthly payment at a potentially lower interest rate. Many clients exhaust all types of business debt consolidation loans, before turning to Delancey Street.

3. Invoice Factoring
   If you’re drowning in slow-paying client invoices, invoice factoring could free up capital. This short-term solution gives you immediate cash you can use to cover business debts. We’ve seen many business owners use factoring to chip away at toxic debt obligations.

4. Business Debt Restructuring
   Sometimes, the best approach is to restructure existing terms so your payments match your current cash flow. This can mean extending the repayment period, lowering the interest rate, or negotiating a partial principal reduction.

5. Third-Party Debt Relief
   Hiring a professional debt relief company like Delancey Street means leveraging seasoned negotiators and legal counsel who understand how to fend off lawsuits or calls from creditors. We focus on communication, showing your lenders real-time financial statements, so they realize your business isn’t simply refusing to pay — it needs help. We also call out lenders who engaged in predatory lending, such as charging excess interest, excess origination fees, etc.

HOW DELANCEY STREET DEFENDS YOU

We understand lenders’ tactics, from daily ACH pulls to personal guarantee triggers. Our founder is an attorney, Steven Raiser, which gives us a two-pronged approach:

1. Legal Defense: If you’re sued, we’ll challenge unjust demands, we will look for loopholes in your contract, or question the validity of certain fees in order to reduce your overall payback.
2. Negotiation: We create a robust plan, including a realistic budget, then contact your creditors. Whether it’s a one-time lump sum settlement or a restructured monthly plan, we strive to reduce your overall debt.

You might wonder: What if the lender already filed a lawsuit? Our team of attorneys steps in, examining each allegation. We look at the original contracts for potential violations of state or federal law. We look at the interest rates, default penalties, or unfair clauses. In many cases, simply knowing your rights can dismantle overly aggressive claims by lenders. We always prioritize open communication with lenders because, ultimately, every lender wants to get paid back — just on terms that don’t crush your business and put you out of business.

CONTACT US IMMEDIATELY

If you’re juggling multiple merchant cash advances or behind on business credit cards, contact DelanceyStreet.com right now. AS SEEN ON major outlets like Forbes.com and Entrepreneur.com, our dedication to business debt relief has garnered national media attention. WE CAN HELP YOU. Just reach out to us today, for a risk free consultation.

OUR EXPERIENCE MATTERS
We’ve successfully:

• Reduced balances by up to 70%.
• Added 1-3 years to repayment timelines.
• Helped 100’s of businesses restore their cash flow.

TIME IS CRITICAL

Delaying action can mean wage garnishments, personal guarantees kicking in, and irreversible damage to your credit. Lenders might pursue judgments at any point. ACT NOW to avoid these pitfalls.