Phoenix Business Debt Settlement and Merchant Cash Advance Lawyers

Phoenix Business Debt Settlement and Merchant Cash Advance Lawyers

Running a small business is tough. Between managing employees, keeping customers happy, and actually growing revenue, it’s easy to lose focus on the financial health of your company. And before you know it, you’ve racked up serious business debt that feels impossible to pay off.If you’re a Phoenix business owner struggling with debt like merchant cash advances or business loans, know there are options. You don’t have to go at it alone or file for bankruptcy as a first resort. There are business debt relief programs and legal defenses available to protect your company and give you breathing room.

How Debt Settlement Attorneys Can Help Phoenix Small Businesses

While debt settlement is usually associated with personal credit card debt, the reality is it can work for business debt too. The process involves negotiating with creditors to reduce the amount owed. A business debt settlement company like Delancey Street partners with experienced attorneys to make this happen on your behalf.Here’s why it’s important to have a lawyer as part of the process.

Knowledge of Debt Collection Laws

There are state and federal regulations that debt collectors and creditors legally have to follow when pursuing payment. This includes everything from when and how they can contact you to prohibiting harassment and false statements.An attorney experienced in debt settlement understands these consumer protection and FDCPA laws. They can ensure creditors don’t cross the line or use unlawful scare tactics to intimidate your business into accepting unfair repayment terms.

Negotiating Power

A letter from a lawyer carries more weight than coming from a non-legal debt settlement firm. Creditors know attorneys have the power to take legal action on behalf of their clients for violations. This makes them more likely to deal fairly and agree to reasonable settlements.

Advice on Bankruptcy

While bankruptcy is usually seen as a last resort, it can be the most strategic option for some businesses depending on circumstances. A business debt lawyer can objectively look at your situation and advise if chapter 7 or chapter 11 bankruptcy might be the most effective path forward. They understand complex issues like which assets can be protected and how filing would impact your business’s future.

Defending Against Lawsuits

If a creditor does move to sue your Phoenix company over unpaid debts, your attorney can build arguments and defenses around things like breach of contract, failure to uphold duties, or lack of validation for the amount demanded. They can also counter sue creditors for breaking debt collection laws or harassment.The bottom line is lawyers serve as legal advocates and advisors to put the odds back in your favor. Relying solely on a non-attorney debt settlement company leaves you vulnerable without this expertise.

What is Business Debt Settlement Exactly?

Debt settlement is a negotiation strategy to resolve what you owe for less than the full balance. It’s based on the premise that creditors would rather get a portion of money owed than nothing at all.The general debt settlement process includes:

  • Investigation and review of all business debts and related contracts
  • Legal review of creditors’ rights and obligations
  • Contacting all creditors to put settlement negotiations in motion
  • Presenting financial hardship evidence and win-win repayment proposals
  • Drafting settlement letters and agreements on accepted offers
  • Ensuring creditors formally document forgiven debt so it’s no longer owed

For most small businesses, the primary goal is negotiating current debts down enough to achieve regular on-time payments moving forward. This improves cash flow critical to keeping operations running.But debt settlements can also negotiate discounted lump sum payoffs when there are resources to do so. Either scenario provides relief and restores financial stability.

What Types of Business Debt Can Be Settled?

Many Phoenix business owners have the misconception that debt settlement only applies to certain types of debt. In reality, the vast majority of financial obligations can be negotiated for less than what’s owed if the creditor sees potential to recover funds.Some of the most common business debts settled include:

  • Merchant Cash Advances – Funds provided by an MCA company are technically an advance against future sales and credit card receipts. They come with extremely high repayment rates and personal guarantees. Debt settlement can drastically reduce payoff amounts and interest rates on these arrangements.
  • Business Loans and Lines of Credit – Term loans, SBA loans, equipment financing loans, HELOCs and other standard bank lending can also be negotiated for better terms or discounts on the balance. Debt settlement represents a last resort alternative to default or bankruptcy.
  • Commercial Leases – Landlords often have flexibility to reduce or defer lease payments if it means keeping a tenant and avoiding vacancies. Debt settlement can secure these concessions and modified payment plans.
  • Outstanding Invoices – Overdue payments to vendors and suppliers can be resolved through negotiated discounts and commitments to regular installment payments.
  • Business Credit Cards – Personal and corporate credit card debt can be dealt with through debt settlement arrangements if normal payments become unmanageable. This includes store cards specific to your industry.
  • Back Taxes – Payroll taxes, sales tax liabilities and other obligations owed to government tax agencies can have payment plans or settlements arranged by experienced tax debt attorneys.
  • Civil Judgments – If a creditor has already won a lawsuit and secured a judgment against your business, post-judgment settlements can still resolve these debts for less through skilled legal negotiation.

The key is acting quickly when financial hardship makes business debts unaffordable as agreed. The earlier debt settlement help is brought in, the more leverage and options available to protect your company.

Why Lawyer-Assisted Debt Settlement for Merchant Cash Advances?

One major pain point for Phoenix small business owners is merchant cash advance (MCA) debt. Unlike flexible lines of credit through traditional banks, MCA loans provide urgent capital needs through speedy approvals. But they also come at a steep long-term cost if not used strategically.Here are some of the common challenges with merchant cash advances that make them good candidates for debt settlement:

Deceptively High Interest Rates – MCA companies can charge the equivalent of 60-200%+ APR when you calculate the total repayment amount and fees owed against the original funding. And those repayment percentages are taken automatically from daily credit card sales at very high rates of 20-30% or more. This can drain cash flow quickly.

Short Payback Periods – MCA contracts often have payback periods of just 6-18 months. For businesses with uneven monthly revenue streams, or in highly seasonal industries, this short timeline can be an unrealistic burden.

Personal Guarantees – Most merchant cash advance agreements require a personal guarantee from the business owner. This puts your personal credit and assets at risk for a business debt if things go south.

Aggressive Collections – MCA lenders routinely utilize aggressive collections tactics, threats of legal action, harassment calls, and intimidation to recoup their investment once a business defaults. This exacerbates rather than helps struggling companies regain financial footing.

Inflexible Terms – Unlike bank lines of credit, MCA companies rarely offer concessions if a business hits hardship and needs temporary modified payment arrangements. Their focus is purely on full rapid repayment regardless of circumstances.Having an attorney well-versed in MCA contracts on your side levels the playing field. They understand the common traps and pitfalls in these financing agreements and can get MCA creditors to the table to negotiate much more reasonable settlements.

The Benefits of Lawyer-Assisted Business Debt Relief

Trying to negotiate complex business debts on your own is usually a losing battle. Creditors have their own legal resources to protect their interests. So you need expert legal firepower as well.The good news is most business attorneys are expensive and out of reach for small business budgets. But at Delancey Street, you get that top-tier legal expertise guided by our own in-house lawyers for one affordable monthly fee.Here are some of the key benefits our members gain through lawyer-assisted debt relief and settlement services:

Prevent Lawsuits and Wage Garnishments
Creditors are much less likely to pursue legal action or bank levies against businesses working in good faith with attorneys to resolve debts. This protects your accounts, assets and credit from aggressive collection efforts.

Reduce and Cap Interest Charges
Debt settlement freezes additional interest and fees from accumulating on balances owed. This keeps payoff amounts from spiraling out of control.

Slash Payoff Amounts
Successful negotiations result in settling debts for 30 to 60% less than the full total owed. This creates significant savings and cash flow relief you can redirect into your business.

Consolidate Multiple Debts
Rather than managing payments to various creditors, our program consolidates everything into one predictable monthly payment you can budget for.

Improve Credit
Getting debts reduced and under control helps businesses rebuild credit and eligibility for affordable financing options long-term.

Avoid Bankruptcy
For most businesses, debt settlements reach win-win agreements that make bankruptcy unnecessary. This allows companies to move forward with a clean slate.

Peace of Mind
The hardest part of financial hardship is the stress and uncertainty it creates. Our members get unmatched emotional relief knowing their debt situation is finally in capable hands.

Why Delancey Street is Different

What sets Delancey Street apart from traditional law firms is keeping top attorneys accessible through more affordable monthly memberships. There are no retainers, hourly fees or confusing pricing models.And because we focus exclusively on debt resolution, our lawyers and advisors specialize in these negotiations and legal processes. This gets small business owners results faster with less hassle.

Our Simple 3 Step Debt Relief Process:

That’s why Delancey Street has a simple 3 step process:

1. Schedule a Free ConsultationSit down with one of our small business debt experts for a free consultation. We’ll review your situation, answer questions, explain options, and make recommendations on next steps. No obligations or pressure.

2. Get Assigned a SpecialistIf you decide you want to work with us, you’ll get introduced to your personal debt relief advisor. They’ll be your go-to contact for anything related to the process.

3. Follow a Customized PlanTogether with your advisor, you’ll map out a tailored game plan based on your specific debt, budget, savings goals and timeline.Regardless of whether your Phoenix business is dealing with merchant cash advance debt, behind on invoices and credit cards, or facing lawsuits and bank levies, take the first step and schedule a free session with our team. It only takes minutes to get pointed in the right direction and feeling hopeful again about resolving your business debts.

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