What happens when you can’t afford the loans and merchant cash advances your business took? Where do you turn? What do you do? Here’s an informative article that discusses this.

Business debt settlement and debt negotiation is effective, if you feel like you’re going to go out of business. Sometimes, paying back debt can feel like pouring money down the drain since you feel like you’re about to go out of business. If you face such a predicament, this article might be able to help you.

Ultimately, every lender wants to get paid back.

No lender wants you to file bankruptcy.

With this in mind, it’s important you consider your options.

First and foremost, if business has gone down – it’s crucial you consider reaching out to the lender and explaining the circumstances. If you explain what’s going on, it’s probable that the lender will work with you and create a payment plan that works for you. Often, lenders are happy to setup a payment plan where the payments are adjusted so that your business doesn’t suffer and can handle the cost.

In other cases, this might not be enough. Sometimes, you have to consider business debt negotiation and business debt settlement.

This is a scenario where the lender and you negotiate, in order to reduce a specific debt, which results in the debtor paying the creditor less than what was owed. Achieving successful debt negotiation, and settlement, isn’t easy. It requires immense knowledge of the law, great negotiation skills, and the ability to fend off potential lawsuits. In addition, you have to know how to negotiate settlement agreements that protect the debtor.

Can you negotiate your own business debt?

It’s possible in some cases. However you may want to work with a company that understands how lenders work, and how debt negotiation works. Typically, it’s best you negotiate with your lender directly and come up with an amicable resolution that works for everyone. It’s important to remember that lenders WANT to work with you. They want you to make payments. If you speak to them, they will be reasonable and help you. In some cases, it might make sense to hire a business debt settlement company.

Here are some of the factors to consider when conducting debt settlement and negotiation

Representation: In most cases, creditors are represented by attorneys in the debt settlement process. Even if the person who calls you to ask for payment isn’t an attorney, they always have an in-house attorney or access to lawyers. Needless to say, it’s helpful to just work directly with the lender. But in some cases, if you’ve already been sued for the debt, you might face an opposing counsel and will need your own attorney. If you aren’t represented by an attorney, you are in serious trouble potentially.

Leverage: Any good negotiation requires leverage. Negotiating debt means more than simply asking to pay less money. It requires you to have a game plan which factors in how much you owe, your current debt to income ratio, and numerous other factors. If you can make a lump sum payment, in exchange for a reduction in overall debt – your debtor might be inclined to agree.

Having a plan is critical. Regardless of whether you engage in debt negotiation or business debt settlement, you must have a plan, and an idea, of what you’re going to accomplish and how it’ll be done.

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Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

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