Alaska Business Debt Settlement and Merchant Cash Advance Lawyers



Alaska Business Debt Settlement and Merchant Cash Advance Lawyers

Running a small business in Alaska can be tough. The long winters, remote locations, and boom-and-bust economy make it hard to achieve consistent profits. And when cash flow dries up, debts can pile up fast.If you’re an Alaska business owner struggling with debt, you‘re not alone. And the good news is, there are options to help relieve the pressure. Business debt settlement may be a viable solution to resolve what you owe and get back on stable financial ground.

How Debt Settlement Works for Alaska Businesses

The goal of <a href=””>debt settlement</a> is straightforward: to reduce what you owe. This is accomplished by negotiating with creditors to pay a lump sum that is less than the total balance. Creditors may agree to this for a few reasons:

  • They get a large payment right away, instead of small monthly amounts over time
  • Settling removes admin costs of chasing late payments
  • Your business is seen as a risk, so getting something is better than nothing if you default

The <a href=””>pros and cons of debt settlement</a> apply to both personal and business borrowers. The key benefit is eliminating debt for less than you owe. The main drawbacks are damage to your business credit score and paying fees to the settlement company.For any Alaska business owner with past due invoices or high-interest debt, exploring settlement could make sense. Common examples that may benefit include:

  • Merchant cash advances – These loans against future credit card sales have sky-high rates over 100%. Settling can slash the total repayment.
  • Delinquent accounts payable – If your business has fallen behind on paying suppliers, vendors may take a discount to recoup losses.
  • Business credit cards – Issuers often settle at 60-80% of balances over $10-15k when payments stop.
  • Commercial leases – Landlords may take a lump sum payment instead of trying to re-lease vacant space.

As you consider the option, understand Alaska has no specific laws regarding business debt settlement practices. So it’s buyer beware – do your homework upfront.

Working With a Reputable Company Matters

The debt settlement process involves negotiating with creditors on your behalf. This is why working with a reputable company matters. An experienced team knows how to strategize offers and push for maximum savings.Warning signs of settlement mills to avoid include:

  • Charging large upfront fees before settling any debts
  • Making unrealistic claims of eliminating 70, 80, 90% or more of debt
  • Requiring access to your bank accounts for withdrawals
  • Failing to explain possible tax consequences

So how can Alaska business owners find a reliable firm to assist with settlements? Here are a few suggestions:

  • Ask trusted advisors for referrals – CPAs, bankers and lawyers often know settlement providers with solid reputations.
  • Verify licensing – Alaska does not require specific licensing but check if the company has voluntary certifications demonstrating standards.
  • Review BBB ratings – Check for complaints lodged against the provider with oversight groups.
  • Compare settlement fees – Reputable firms charge success-based fees after negotiating savings.

As an example, Delancey Street is a nationally recognized settlement company that opened an Anchorage office in 2020. They have an A+ Better Business Bureau rating and charge fees only after settling debts. Owners Mike and Lisa Walsh help Alaska businesses resolve debt through customized plans. “We know how hard small business owners work,” says Mike. “Negotiating with lenders provides a fresh start.”

Merchant Cash Advance Relief Options

A type of business debt that causes particular hardship in Alaska is merchant cash advances (<a href=””>explained here</a>). These loans carry triple-digit interest rates and require owners to pay back 2-3X the amount borrowed through daily credit card deductions.For Alaska businesses facing crushing MCA repayment, Delancey Street lawyers can help in a few ways:

  1. Renegotiate terms – If the MCA agreement allows, we can try to lower the payback amount and extend the term so daily payments are smaller.
  2. Settle for less than you owe – We negotiate lump sum discounts based on your specific situation to resolve MCA debt.
  3. Explore defense options – There may be grounds to invalidate the MCA loan, such as deceptive marketing, loan stacking, or usury violations.

While each business scenario is different, our goal is limiting further damage from predatory merchant cash lending. “These funders take advantage of small firms desperately needing capital. There are often better solutions,” says Delancey Street attorney Jonathan Wilk.

What Does Alaska Business Debt Settlement Cost?

Reputable companies like Delancey Street provide debt relief services on a contingency fee basis. This means there are NO UPFRONT FEES charged to settle accounts. Instead, the settlement company earns a percentage of savings generated for the business client. Their incentive is to negotiate maximum reductions with creditors.For example, if a business owes $100k and settlements save $60k, the fee might be 25% of those savings. So $15k would go to the settlement company, while the business cuts debt by $45k. All fee details are disclosed in a services contract before starting the process.There are no guarantees with debt settlement, but reputable firms succeed 80-90% of the time. The key is determining realistic targets with creditors so offers represent deals they’ll likely accept. Patience is required too, as the process averages 6-12 months until all accounts resolve.

Why Hire Business Debt Settlement Lawyers?

Some Alaska owners wonder why working with lawyers makes sense over non-legal settlement companies. There are a few advantages to the legal approach:

  • Leveraging attorney negotiations – Creditors often view attorney offers as more “official” and serious when trying to collect from businesses. So response rates may improve.
  • Understanding defenses – Lawyers can identify any violations of lending laws to potentially invalidate debts, or improve bargaining position.
  • Stopping collections – Attorneys can invoke legal protections regarding harassment from collectors seeking payment.
  • Advising on bankruptcy – If settlement efforts fail, lawyers can pivot to helping file business Chapter 7 or Chapter 11 bankruptcy petitions as a last resort.

Think of business debt lawyers as legal and financial advocates. Their role is crafting deals that creditors will accept, while limiting future collection hassles. For Alaska small business owners overwhelmed by debt, this third-party assistance makes the process less stressful.

Next Steps for Struggling Alaska Small Businesses

Have questions or want to discuss options for finding Alaska business debt relief? The Delancey Street team understands the challenges local owners face. 

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