Business Debt Relief: An Empathetic Guide for Struggling Small Business Owners

Running a small business is hard work. As an owner, you have to wear many hats – from managing employees to keeping the books balanced. And in today’s economy, it can feel like you’re running uphill with weights strapped to your ankles.That’s why, here at Delancey Street, we want to extend a hand – and provide real, actionable advice for small business owners who feel overwhelmed by debt. We’ve been around the block a few times ourselves, so we know how lonely and isolating the struggle can feel. But take heart: there are always solutions if you know where to look.

The First Step is Admitting You Have a Problem

They say admitting you have a problem is the first step to recovery. That’s true whether you’re battling addiction or finding yourself awash in business debt. If your debt has become unmanageable, don’t despair. And don’t be afraid to ask for help. There are many reputable companies like ours that specialize in business debt relief. We can negotiate with your creditors on your behalf to settle debts for less than what is owed (more on that process later).

Take Stock of Your Finances

Before deciding on a course of action, you need clarity on your full financial picture. Take some time to tally:

  • Total debts owed
  • Interest rates on each debt
  • Minimum monthly payments
  • Income and revenue
  • Assets that could potentially be sold or leveraged

Having all this information in one place will allow you to make an informed decision on the best path forward. Don’t let shame prevent you from being honest with yourself. This is simply about gathering the facts so you can map out a solution.

Explore Your Options

Once you have a handle on your finances, it’s time to look at your options. Here are some of the main paths business owners take when tackling significant debt:

Debt Consolidation

With this approach, you take out a new loan to pay off multiple existing debts. The goal is to secure a lower interest rate, resulting in reduced monthly payments. Pros and cons of debt consolidation.

Debt Settlement

This involves working with a company like ours to negotiate directly with your creditors and settle accounts for less than the full balance. More on this below. Learn more about debt settlement.


Declaring bankruptcy provides legal protection while debts are reorganized or eliminated. Chapter 11 bankruptcy allows you to continue operating while developing a repayment plan. Small business bankruptcy basics.


If your business is beyond saving, you may need to sell off assets and use the proceeds to pay off creditors. Any remaining debts would need to be negotiated. Strategies for winding down a business.

How Debt Settlement Works

If you’ve weighed the options and believe debt settlement is the most viable solution, here’s an overview of how the process works:

  • You stop making payments to creditors so funds can accumulate for settlements
  • We negotiate with your creditors to settle accounts for less than the full balance
  • Creditors agree to settlements since they avoid the risks and costs of bankruptcy
  • We establish a dedicated, FDIC-insured bank account to hold funds
  • As enough funds accumulate in the account to reach settlement thresholds, we facilitate deals with creditors
  • Once all your accounts have been settled, you’re debt-free!

The exact timeline varies, but with consistent savings and our experienced negotiating team, most people can become debt-free in 12-48 months.And since we only collect fees as debts are successfully settled, you incur no upfront costs or monthly fees – our incentives are fully aligned with your success.

What Debt Settlement Can & Can’t Do

While debt settlement can be an effective solution, it’s not a silver bullet. Here are some key things to understand:

Debt settlement CAN:

  • Reduce total debt owed by negotiating settlements for less than full balances
  • Lower monthly payments by consolidating debts into a single payment
  • Eliminate calls from creditors and debt collectors
  • Offer a path to becoming debt-free faster than minimum payments

Debt settlement CAN’T:

  • Guarantee all your debt will be eliminated
  • Prevent damage to your credit score
  • Stop creditors from filing lawsuits if you stop paying (hence need for settlement funds)
  • Discharge business debts like payroll taxes – bankruptcy may be better option

The key is having realistic expectations. Debt settlement can provide meaningful relief, but doesn’t make consequences disappear entirely.

Avoiding Debt Relief Scams

The debt relief industry is unfortunately ripe with scams and predatory companies. Here are some red flags to watch out for:

🚩 Charges upfront fees before settling any debts

🚩 Promises to settle debt for specific % without reviewing your accounts

🚩 Says they can make your debt disappear or stop all collection

🚩 Uses high pressure sales tactics like demanding immediate payment

🚩 Claims special access to government programs to erase debt

🚩 Refuses to provide a detailed agreement for review by your lawyer

At Delancey Street, our top priorities are transparency and ethical practices. We believe in building trust through honesty.

Our Step-By-Step Debt Relief Process

If you decide Delancey Street is the right partner for your business debt relief, here is an overview of what you can expect:

  1. Free Consultation: We’ll review your financial situation in depth, answer all questions, and determine if debt settlement is the best path forward. No obligations.
  2. Client Agreement: This customized agreement outlines the debt settlement process, timeline, fees, and your legal rights. Lawyer review encouraged.
  3. Open FDIC-Insured Account: You’ll open a dedicated bank account that lets you accumulate funds safely as we negotiate settlements.
  4. Stop Creditor Payments: We’ll send letters informing creditors you are beginning debt settlement and payments will be discontinued.
  5. Negotiations & Settlements: Our team gets to work negotiating directly with your creditors. As accounts are settled, funds are disbursed from your account.
  6. Become Debt Free: With persistence and adequate savings, all your business debt can be resolved through negotiated settlements.
  7. Ongoing Support: Even after becoming debt free, we’re here for advice on staying on solid financial footing.

Stories of Success

Don’t just take our word – hear from real small business owners who became debt free with Delancey Street:

“As a new restaurant owner, I quickly accumulated over $120,000 in debt between equipment leases, inventory loans, and high interest credit cards. Delancey Street negotiated settlements that wiped it all out for just $78,000! I’m now debt-free and able to focus on growing my business.” – Christina R., Boston MA

“They helped me settle $92,000 in credit card debt from my printing business for less than half that amount. My monthly payments were cut by more than 60%. I honestly didn’t think becoming debt-free was possible.” – Mike W., Denver CO

“I was skeptical at first but Delancey Street came through big time. They settled my debts for pennies on the dollar. Beyond the financial relief, the peace of mind is priceless. I highly recommend their services.” – Stephanie P., Austin TX

Ready to Take the First Step?

We hope this guide has reduced some anxiety and provided a roadmap to tackle your business debt. You don’t have to keep shouldering this alone – help is a phone call away.Our experienced team is ready to guide you through the debt settlement process from start to finish. There’s no obligation to get started – call today and we’ll set up a free consultation.The first step is always the hardest. Make it today and start looking forward to a debt-free future!

Delancey Street is here for you

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.

"Super fast, and super courteous, Delancey Street is amazing"
$125,000 Small Business Loan
"Thanks for funding me in literally 24 hours"
$35,000 Lawsuit Advance
"Great choice for first time fix and flippers"
$250,000 Hard money Loan

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Get Out of Debt
Credit Card Debt Relief
Marital Debt Relief

Managing Marital Debt: Strategies for Financial Freedom Marriage can be…

Private Student Loan Debt Relief

Managing Private Student Loan Debt: Options for Relief Private student…

Veteran Debt Relief

Helping Veterans Find Financial Freedom Being a veteran comes with…

Delancey Street understands funding like no one else!
Steven Norris
Get Funding Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Apply Now