Unwind the debt. Unlock the growth.

Settlement means negotiating an agreed payoff. Restructuring and modification involve proposed changes to payment terms. Workout is a broader term for discussions about a distressed obligation. What matters is the written agreement you and your funder accept. Independent counsel can explain its legal effect.

A funder may transfer an account or hire an agency to collect on its behalf. We help identify who is handling the account and who can discuss a settlement. Questions about the notice, your obligations, or possible defenses belong with independent counsel.

When a lender is deciding what offer to accept, they're not anchoring to your balance. They're running a recovery curve that estimates what they'll net after legal spend, present-valued against their cost of capital (12–18% for most MCA shops), and the probability of actually recovering funds. Time is a factor: how long will it take? Could they recover 60 cents today, lend it back out at a 1.5 factor rate, and earn more than they would chasing your full balance? It's a multivariable equation.

The bottom line: there is no hard-and-fast rule. Every situation is unique. If you're talking to a business debt settlement company taking a cookie-cutter approach, you're talking to the wrong company. Delancey Street prides itself on a tailored approach for every client. Before we accept you, we look at your situation, dig deep, and peel back as many layers of the onion as possible to understand exactly where you stand.

You do not need to wait for a missed payment to discuss your situation. We review your cash flow and talk through potential options with your funders. Their willingness to negotiate depends on the account and their policies.

Starting work with us does not change your payment obligations. Missing payments can lead to fees, collection activity, and legal action. Any revised payment terms require your funder’s agreement.

Funder behavior isn't constant at all. Every funder has their own book, their own underwriting guidelines, and their own internal parameters. Settlement landing zones shift based on portfolio performance, what their lender (the capital provider behind them) is pressuring them about, regulatory developments, and macro conditions. Virtually every lender has a different idea of what success looks like for their book. Each funder is a different personality.

A funder that was taking 45¢ in Q1 might be taking 32¢ in Q3 because their write-off quota for the year hasn't been hit and their portfolio manager is closing files aggressively. Same funder, same fact pattern, different number. This is why a settlement firm that closed deals with a specific funder in 2023 isn't necessarily current in 2026, funder behavior shifts, and the playbook has to shift with it.

There is no one-size-fits-all order. We review your balances, payment schedules, available cash, and the status of each account before discussing a negotiation approach with you. If a lawsuit or legal deadline is involved, independent counsel can advise on that issue.

This is the most common trap in the industry. It looks like relief, but it's really more debt under a different name. When you're struggling on an MCA, the funder will frequently offer to “consolidate” your balance into a new, larger advance with a longer term and a fresh factor rate, sometimes called a “refi” or “renewal.”

What actually happens: the new advance pays off the old balance, you get a small amount of new working capital, but the total payback obligation balloons because the new factor rate applies to the entire new amount (old debt + new debt). It is not a permanent solution. It offers nothing except relief, and when the pain returns, it returns twice as hard. You've now committed to paying back significantly more money over a longer period, with a fresh COJ, a new UCC filing, and an extended personal guarantee.

Renewals often increase total debt by 30–60% in exchange for short-term cash flow relief. Remember, you're signing up for a 1.5 factor rate (or something equally high). Some are legitimate. Many are designed to convert a distressed account into a healthier-looking one on the funder's books, while doubling your obligation.

How an MCA agreement is classified is a legal question. The contract, the facts, and applicable law matter. Independent counsel can assess those questions and any available legal options. Our team focuses on the financial information and funder negotiations.

The written settlement terms matter, including what happens after you complete the agreed payments. We work to document the terms offered by the funder. Independent counsel can review release language and explain what it does and does not cover before you accept.

If your revenue has changed, a reconciliation provision may be relevant to a discussion with your funder. We can help organize your financial information and discuss a proposed adjustment. Independent counsel can explain the contract and any legal implications. A request alone does not change what is due.

We cannot promise that your customers, vendors, or bank will never learn about a debt issue. Reporting, collection activity, and public proceedings vary. We discuss the account’s current status with you; independent counsel can review notices or legal concerns.

A funder may contact customers or payment processors during collection activity. If that happens, save the communications and get independent legal guidance about the notices and any deadlines. We can discuss the underlying balance and potential settlement terms with the funder.

If you have been served, get legal guidance promptly and keep copies of the papers. Independent counsel can explain the deadlines and available responses. Our team can separately review your cash flow and discuss settlement options with your funders. Negotiations do not pause court deadlines or change payment obligations.