Business Debt Resolution
Regain Control of Your Finances with Merchant Debt Solutions
Are you struggling with unsupportable business debt and personal guaranties, unsure how to regain control of your finances?
At Merchant Debt Solutions, we understand the challenges you’re facing. That’s why we offer tailored debt restructuring services designed specifically for your unique business needs.
Debt restructuring is a delicate process. Not all debt settlement companies conduct business ethically or prudently, which can leave business owners financially worse off than before.
How Does Debt Restructuring Work?
Debt restructuring involves renegotiating the current terms of outstanding business debt obligations into new terms that are affordable for the business owner and acceptable to the creditor. In its purest form, business debt restructuring is a crucial aspect of the small to medium-sized business world. When done correctly, it can save the business and ensure creditors receive payments on debts they might otherwise have to write off.
The key to successful debt restructuring is finding a program that provides a realistic, comprehensive plan addressing the business owner’s needs and circumstances while considering their financial obligations to creditors. There is a right way and a wrong way to approach this process, and unfortunately, many debt settlement companies fall short in their efforts.
The Old Model of Debt Settlement
The majority of the debt restructuring/debt settlement industry follows the same ineffective model that worked 10 years ago prior to the emergence of the current MCA industry. The model consists of building up cash reserves in an escrow or operating account with the intention of presenting the creditor companies with lump sum offers to secure substantial discounts on the principal balances. This model is effective with unsecured debt, such as:
- Personal & business credit cards
- Vendor & supplier debt
- Unsecured loans & LOCs
- Equipment leases and loans (as long as the equipment is not vital and can be repossessed)
The Old Debt Settlement Model Doesn’t Work Anymore
The Merchant Cash Advance (MCA) industry emerged in 2014, utilizing a “cash flow” model that determines qualification based on three months of bank statements showing the cash flow into the business. Business owners were quickly encouraged to “stack” their debt, adding multiple MCA positions on top of their previous advances.
When business owners inevitably defaulted on multiple advances, MCA funders employed aggressive and litigious collection tactics, putting many merchants and business owners at risk of closing their doors. These tactics include sending 406 Lien Notices that enable them to collect from merchants by:
- Freezing bank accounts (both business and personal)
- Freezing credit card processors (e.g., Stripe, Square, Shopify)
- Directly contacting customers and demanding payment of funds due to the merchant/business owner
- Contacting medical insurance providers and demanding payment of funds due to the doctor/medical practice
- Freezing payment portals (e.g., Cash App, PayPal, Venmo)
- Freezing funds from delivery services (e.g., GrubHub, Uber Eats, DoorDash)
Due to these aggressive tactics, MCA debt became the primary focus of merchants and business owners, taking precedence over unsecured debt in terms of payment priority. This old model of building up cash reserves over time leaves businesses vulnerable to creditor attacks, making traditional debt settlement approaches not only ineffective but also dangerous.
Our Approach is Different
At Merchant Debt Solutions, we don’t believe in simply stalling creditors while you save for a settlement. We take immediate, proactive steps to work directly with your creditors to fully resolve your business debt and personal guaranties. By engaging with creditors rather than working against them, we protect your business and its cash flow, paving the way for a brighter financial future.
Whether your debt consists of merchant cash advances, business credit card debt, vendor debt, or other unsecured debt, our program can help. Merchant Debt Solutions offers an ethical and accessible alternative to bankruptcy.
When your business succeeds, everybody wins.
Frequently Asked Questions
If your company is falling behind on payments to any of your creditors, vendors, suppliers, or employees, our program is definitely worth considering. If you have taken out additional financing to cover any of the creditors listed above or if you haven’t taken a paycheck for yourself in weeks, months, or years, you owe it to yourself to learn about our program and our efficient and ethical restructuring process.
A majority of our clients enroll in our program with multiple positions, and all have one thing in common. They’re experiencing severe cash flow constraints due to excessive daily, weekly or monthly payments that they can no longer support. Merchant Debt Solutions advisors negotiate acceptable terms with your lenders that affordable and benefit all parties.
That depends on the situation. Typically, the average is two to eight weeks, which is beneficial for business owners in need cash flow. In situations requiring more aggressive action, settlements can be expedited.
Don’t Settle for Less
Unlike other “debt settlement” companies that simply delay the inevitable, Merchant Debt Solutions takes a proactive approach to debt resolution. Your consultation is risk-free, with no obligation to work with us if it doesn’t feel like exactly the right fit.
Take the First Step Towards Financial Freedom Today
Are you ready to take control of your finances and start your journey toward financial freedom? Book your free consultation with a Merchant Debt Solutions advisor today to learn more about how our tailored debt resolution services can help you overcome your debt challenges.
Let’s work together to create a brighter future for your business.