Delancey Street Business Debt Settlement
What is Business Debt Settlement?
Delancey Street is a premier, and award winning business debt relief company. Businesses accrue all sorts of business debt, ranging from merchant cash advance debt, to business credit card debt, SBA loans, and more. Regardless – we can help you. Our team focuses on all types of unsecured business debt.
-Many business owners accrue business debt, because they were hoping to grow; or perhaps they needed a life line. Either way, now – that debt is toxic, and it’s impossible to keep up. When you enroll in a business debt settlement program, like the one offered by Delancey Street – you’re creating a way to avoid going out of business.
Understanding the Business Debt Landscape
There are many different types of debt that business owners can accrue, ranging from credit card debt, to SBA loans, term loans, equipment financing, and more. In addition, there are other types of business debt such as vendor/supplier debts, lease obligations, etc. Bottom line, regardless of the type of business debt you have – we can help you.
Often, there are many tell tale signs that demonstrate you’re a candidate for business debt relief. For example, if your business often has persistent cash flow issues, then it’s likely your business debt is overwhelming you and you need a way out. Many of our clients first realized they were in distress because they failed to make their minimum payments, and there was a chronic pattern of late payments – or notices of default from their lenders. This resulted in strained relationships with creditors and vendors.
Understanding How Business Debt Settlement Works
Business Debt Settlement is a potentially complicated process. One of the most important things is negotiating with your creditors. Business debt settlement usually involves negotiating a new agreement, and having lenders agree to new terms – often, reduced principle amounts, or lower interest rates, to make the debt easier to manage. This is a strategic conversation, which requires you to have the best possible team on your side.
-Delancey Street firmly believes that open communication is one of the main reasons creditors are often willing to listen to you. Our team prides itself on establishing lines of communication with lenders immediately after you join our program, and proactively explaining your financial challenges. At every step, we have clear objectives, with an aim to reduce the total owed, get lower interest rates, and stretch out your payment schedule. By using your up-to-date balance sheets, your cash flow statements, and P/L statements, we are able to use data to get you the best possible outcome.
Why Working with Delancey Street is Better than Self-Negotiation
Business debt relief companies like Delancey Street pride themselves on having professional expertise. We specialize in negotiating with creditors, and have immense experience – knowing many of the negotiators on a first name basis, and having established relationships. Moreover, handling creditors can be a complicated process – when you work with Delancey Street, we save you the time of dealing with creditor calls, and paperwork. We are a dedicated company, focused on helping you run your business. Many business debt relief companies charge high fees, or require substantial upfront payments. When you self-negotiate, you won’t pay a third party fee, so every dollar you save goes towards paying your debts – but this comes at a price. For example, if you aren’t good at negotiating – and don’t know the law, you may end up paying more than you originally owed, with default fees, etc.
Key Considerations Before Conducting Negotiations
Before you start the process of negotiating, it’s important to do a financial assessment; make sure to review cash flow, assets, and liabilities. It’s important to determine what you can realistically offer. Some creditors, like key suppliers, or equipment financing companies, can have more leverage than others. Settling debt for less than what you owe, can also have tax consequences. Bottom line – business debt relief is a complicated process, filled with pitfalls.
Different Ways To Handle Business Debt Relief
- Debt Restructuring: This involves negotiating with your creditors in order to change the terms of the debt. For example, this is a way to extend the repayment period, get a lower interest rate, or even get the principal reduced. Engaging with lenders with this type of outcome can provide needed relief, and make your business debt easier to manage. Often, it can help you get a lower monthly payment which can help improve your cash flow, and reduce your overall expenses.
- Debt Consolidation Loans: These are used to combine multiple business debts into one monthly loan payment. This can help you manage your debts, and also results in a lower overall interest rate. Moreover, debt consolidation can make it easier to manage your debt because you don’t have to keep track of multiple payments.
- Balance Transfer Credit Cards: Many business owners use balance transfer credit cards in order to consolidate their higher interest credit card debt. If you can get a business credit card, you can get an initial 0% APR intro rate. You can then transfer your existing debt to this new credit card, and pay it off without accruing further additional interest – or late charges.
- Debt Management Plans: DMP’s are often administered by credit counseling agencies to help businesses get debt relief. The DMP helps small businesses create a structured repayment plan. Usually, the debt is paid off over a specified period, with lower interest rates.
- Invoice Factoring: This involves selling your unpaid invoices to a factoring company at a steep discount. This lets you manage your finances more easily, and gives you immediate cash flow while the factoring company gets payment on the invoices later. This can be a fast way to get access to cash which is tied up in accounts receivable.
- Cutting Costs: No one wants to cut costs, but this can make a big difference sometimes. This can mean laying off staff, reducing expenses, switching vendors, etc.
- Asset Liquidation: One way to get out of business debt is to sell non-essential business assets which can generate substantial cash and be used to pay down debt. This can include selling equipment, your real estate, or other assets, which aren’t critical to the core operations.