What Types of Business Debts Can Be Settled or Negotiated
REGARDLESS OF THE STAGE, WE CAN HELP YOU

Delancey Street is a top-tier business debt relief company. We offer a money back guarantee for debt relief services for any type of MCA debt we are handling – our goal is to get you a better outcome than the situation you’re in right now. We focus on helping businesses settle and negotiate many forms of unsecured business debt. We have EXPERIENCED teams, of lawyers, and financial experts, who guide you at every step. We protect your interests. We handle the entire process – even going to court.

Understanding the Debt Landscape
Business owners face MANY debt obligations. SBA loans, merchant cash advances (MCA), business credit card debt, equipment financing, vendor invoices, and lines of credit are common. Each can create a burden that needs a unique solution. For example, MCA debt is unsecured debt – and must have a different legal option than a secured line of credit. Each type of business debt can trigger different collection efforts from lenders. Regardless of the type of debt, Delancey Street can create a plan that works for you – and the lender.

SBA Loans
SBA loans involve federal backing, they are backed literally by the government. The Small Business Administration provides guidelines on how this all works. Failure to repay can lead to serious consequences, for example you may be ineligible to borrow in the future. Borrowers can face personal liability. The SBA is likely to pursue legal action to recover losses. See SBA.gov for official guidance on default procedures.

Merchant Cash Advances
MCA lenders often give you upfront funding based on your future sales. They take a set percentage of credit card revenue. The repayment structure can escalate your monthly payments. This can strain your business cash flow on a weekly/monthly basis. A default of the MCA can result in fast legal action, including possible Confessions of Judgment (COJs). The COJ is a very deadly legal weapon, because the lender doesn’t even need to file a lawsuit. It’s overnight. These COJs give MCA lenders the power to seize assets without a standard court process. Many lenders are hoping you’ll default – because that way, they can charge you more money.

Business Credit Cards
Credit card debt can escalate rapidly, because of fees, interest, and the fact you keep using the credit card. Missed business debt payments can trigger default interest rates. Late fees can pile up with no end in sight. Creditors might send accounts to collection agencies, who then charge another 20-30% on the balance. Business owners can face lawsuits because debt collection companies will reach out to you, and if you don’t respond, they’ll file a lawsuit as the only way out. Delancey Street can negotiate with these creditors in order to reduce your principal balance or secure lower interest rates. If you apply for financing, you could see higher interest rates in the future.

Equipment Financing
Financing agreements can involve security interests in the equipment. A default of your equipment financing agreement might lead to repossession of the asset in question. Some lenders pursue deficiency judgments if the sale of repossessed equipment fails to cover the entire balance. We can help business owners restructure or settle these obligations.

Lease Obligations
Commercial leases can include clauses that penalize tenants who break agreements. Defaulting on a commercial lease can lead to lawsuits, eviction, and money judgments. Delancey Street negotiates with your landlords and property managers. We create manageable payment schedules or final settlement amounts, and create a new payment schedule that works for you and the lender.

Vendor or Supplier Debts
Vendors will often file lawsuits for unpaid invoices. Some vendors can add late charges or penalty interest. Our team opens lines of communication with vendors, explains your constraints, and we propose repayment terms or lump-sum settlements.

UNDERSTANDING PENALTIES AND LEGAL CONSEQUENCES
Penalties differ depending on the debt type and terms. Government-backed loans follow regulations under Title 13 of the Code of Federal Regulations. Private business loans might fall under state laws or the Uniform Commercial Code (UCC). An MCA with a COJ can lead to immediate judgments. A credit card default can involve interest hikes. A line of credit default can trigger personal guarantees.

Default and Collection Lawsuits
Creditors can file lawsuits for missed payments. Courts might issue judgments. Judgments can allow wage garnishments or asset seizures, depending on state laws. Check FTC.gov for consumer and business protection updates.

Confession of Judgment (COJ)
A COJ can speed up legal outcomes. MCA lenders will sometimes enforce these provisions. They can freeze accounts, seize assets, or disrupt operations. Delancey Street defends business owners facing COJs. We seek to negotiate revised terms or settlement amounts.

Tax Consequences
Settling debt can create taxable events. The IRS might treat forgiven debt as income. Before we engage in any type of debt relief, we make sure this is something you understand the ramifications of. Visit IRS.gov for information on debt cancellation and tax reporting. Delancey Street often coordinates with tax professionals to help you plan.

WE FIGHT. WE PROTECT. WE WIN.

Defense Strategies
Businesses need an organized legal approache to debt settlement. We create strategies that address lawsuits, defaults, or demands. We examine each contract. We identify errors or violations. We negotiate revised principal balances. We request lower interest rates. We coordinate payment schedules that keep the business stable. We use your financial statements, bank records, and P/L to demonstrate hardship.

How Debt Negotiations Can Get Dismantled
Imagine your lender calls daily and is harassing you. You feel cornered because you have no one to talk to. You skip payments, because money is running out. You see a lawsuit filed. You lose clients. Accounts get frozen. Operations stall. Employees panic. The business moves closer to shutting down. Pressure builds. The settlement conversation derails. The creditor claims breach of agreement. You fall deeper into default. The entire situation collapses. You feel hopeless.

Our Approach
Delancey Street addresses these concerns for you. Our team of lawyers and financial experts speak to lenders and propose fair outcomes. We show each MCA lender you are serious about repayment. We stretch out the term where possible. We reduce penalty fees. We push for factor rate reduction. We present an approach that preserves your cash flow. We pivot to potential consolidation if it helps. We handle your negotiations – with our team of attorneys. You focus on your business.

REGARDLESS OF YOUR SITUATION, WE PROVIDE A WAY OUT AND HELP YOU.

Specific Strategies for Your Defense

• Direct Negotiation with MCA lenders, credit card companies, or SBA-backed lenders, in order to to get a new payment plan in place
• Restructuring interest rates or principal balances, in order to reduce the overall burden on you
• Challenging COJ Enforcement through legal counterarguments, and going to court
• Creating Payment Plans that align with your revenue
• Filing Motions to Vacate default judgments if possible