[Thewolfofallstreetz]

Hello,

Can someone explain debt restructuring to me. What are the benefits? Is it better than a consolidation?

From a business owners point of view would you rather do a reverse consolidation or debt restructuring?

[Yankeeman07]

Hello,

Can someone explain debt restructuring to me. What are the benefits? Is it better than a consolidation?

From a business owners point of view would you rather do a reverse consolidation or debt restructuring?

Debt Restructuring if possible, obtain a term loan , pay off existing MCA(s) in full - Obtain UCC Releases and have the merchant move on.
Never go back to the multiple MCA pool again.

[Bcooper]

Hello,

Can someone explain debt restructuring to me. What are the benefits? Is it better than a consolidation?

From a business owners point of view would you rather do a reverse consolidation or debt restructuring?

debt restructuring in mca terms is similar to a settlement but not the same, with a traditional settlement the merchant stops payments and attempts to negotiate a lower debt amount. as an example with a settlement if the merchant owes 100k as an example they will stop payments begin paying a settlement firm for a period of 1-3 months significantly lower payments 1-2k per week at typically none of the initial payments during the 1-3 month period would go towards the lenders they are purely fee's paid towards the settlement firm with the highest I've seen being 500k in fees over three months with not a penny going towards the lenders. after the initial 1-3 months the settlement company may start making payments towards the balance owed to the lenders but most don't. This program is also called a consolidation by most the other version of a "consolidation" is known as a reverse consolidation this program totals out the payments per week a merchant has so as an example lets say a merchant is currently paying 10k a week in payments the reverse consildation lender will come in on Monday and deposit 10k into the merchants bank account and charge them a new payment typically 30% less over the course of the week in this example it would come out to 1,400 daily. the problem with this program is that the original payments are still coming out of the merchants account plus the new daily payment. I have done many reverse consolidation with the largest being for almost 2 million. to put it simply I've seen one be successful in the many years I spent in the MCA space. Now on to debt restructuring, this program is similisar to debt settlement but far superior for a number of reasons. lets say you have a merchant with 100k in balances paying 10k a week in payments. with a debt restructure they will stop payments and engage the restructure firm the key differences begin here. the first and largest difference being the debt amount to the lenders does not change. a debt restructure firm will not touch the amount they genuinely owe. the restructure firm will then move a client onto a new payment structure typically 50-70% less than what they are currently paying. this provides the client with immediate cash flow relief as they move to one weekly payment that is significantly less. this is also where major differences show once again, with a debt restructure firm 70-85% of the payment goes directly to the lender from day one, there is no fee period the remaining 15-30% is the only source of revenue that the restructure firm receives from the deal. Restructure firms are also proactive from the moment the merchant signs the contract and pays the first payment the firm is calling the lenders and negotiating the payments down and your client will typically receive what we call Mod agreements within a week with exceptions being the scum bags of the industry who will fight it no matter what. this program is great as it genuinely helps the merchant but does not lower the debt amount they legally took. The other major benefit for merchants who enter this program is the protection is provides legally, once retained the lenders have to contact the debt restructure firm and the client is provided with a no fee retainer for a team of attorneys to protect them in the event of lawsuits. normally it never even comes to a lawsuit or judgment due to the speed at which we contact lenders and the fairness of the program. Ive yet to meet a single lender who isn't a scum bag who does not agree to the new program and if lenders would honor lowered payments this program might not exist but most lenders will only honor lowered payments for a week or two before raising them again back to the original amounts. this ends up putting the merchant right back into the same spot they were in prior to lowering payments and defeats the entire purpose of lowering them in the first place. Youll also come across files with lenders such as, everyday, bridge, jett, and various others who are so extremely overleveraged that this is really the only option for them. Feel free to give me a call if you have any questions or want to go over a scenario as all of this changes the second you hit the middle market.

[Olderguy]

It's like a bankruptcy....once you are in, the lender/debtors have to talk to the restructure company and not you.

Now most importantly, the merchant absolutely needs to hire a financial accounting managment firm to overhaul their accounting and finances to get them out of the situation that required them to take on debt to be overleveraged in the frist place. Most merchants have tax preparation services to minimize taxes but not accounting/financial pros that will help them grow their business using low cost financial instruments. That is what any MCA client needs.

Reach out - we have a team to do this.

[mistamca]

debt restructuring in mca terms is similar to a settlement but not the same, with a traditional settlement the merchant stops payments and attempts to negotiate a lower debt amount. as an example with a settlement if the merchant owes 100k as an example they will stop payments begin paying a settlement firm for a period of 1-3 months significantly lower payments 1-2k per week at typically none of the initial payments during the 1-3 month period would go towards the lenders they are purely fee's paid towards the settlement firm with the highest I've seen being 500k in fees over three months with not a penny going towards the lenders. after the initial 1-3 months the settlement company may start making payments towards the balance owed to the lenders but most don't. This program is also called a consolidation by most the other version of a "consolidation" is known as a reverse consolidation this program totals out the payments per week a merchant has so as an example lets say a merchant is currently paying 10k a week in payments the reverse consildation lender will come in on Monday and deposit 10k into the merchants bank account and charge them a new payment typically 30% less over the course of the week in this example it would come out to 1,400 daily. the problem with this program is that the original payments are still coming out of the merchants account plus the new daily payment. I have done many reverse consolidation with the largest being for almost 2 million. to put it simply I've seen one be successful in the many years I spent in the MCA space. Now on to debt restructuring, this program is similisar to debt settlement but far superior for a number of reasons. lets say you have a merchant with 100k in balances paying 10k a week in payments. with a debt restructure they will stop payments and engage the restructure firm the key differences begin here. the first and largest difference being the debt amount to the lenders does not change. a debt restructure firm will not touch the amount they genuinely owe. the restructure firm will then move a client onto a new payment structure typically 50-70% less than what they are currently paying. this provides the client with immediate cash flow relief as they move to one weekly payment that is significantly less. this is also where major differences show once again, with a debt restructure firm 70-85% of the payment goes directly to the lender from day one, there is no fee period the remaining 15-30% is the only source of revenue that the restructure firm receives from the deal. Restructure firms are also proactive from the moment the merchant signs the contract and pays the first payment the firm is calling the lenders and negotiating the payments down and your client will typically receive what we call Mod agreements within a week with exceptions being the scum bags of the industry who will fight it no matter what. this program is great as it genuinely helps the merchant but does not lower the debt amount they legally took. The other major benefit for merchants who enter this program is the protection is provides legally, once retained the lenders have to contact the debt restructure firm and the client is provided with a no fee retainer for a team of attorneys to protect them in the event of lawsuits. normally it never even comes to a lawsuit or judgment due to the speed at which we contact lenders and the fairness of the program. Ive yet to meet a single lender who isn't a scum bag who does not agree to the new program and if lenders would honor lowered payments this program might not exist but most lenders will only honor lowered payments for a week or two before raising them again back to the original amounts. this ends up putting the merchant right back into the same spot they were in prior to lowering payments and defeats the entire purpose of lowering them in the first place. Youll also come across files with lenders such as, everyday, bridge, jett, and various others who are so extremely overleveraged that this is really the only option for them. Feel free to give me a call if you have any questions or want to go over a scenario as all of this changes the second you hit the middle market.

Would pressing "ENTER" here and there kill you?

[Bcooper]

Would pressing "ENTER" here and there kill you?

it was 1 am and I was tired in my defense

[8FigureFunder]

Is Debt restructuring the same as going to a debt settlement lawyer? If not, what companies help with debt restructuring?

[Bcooper]

Is Debt restructuring the same as going to a debt settlement lawyer? If not, what companies help with debt restructuring?

They are similar but not the same, with debt restructuring we are only going after the term they have to pay back rather than with settlement where they try to reduce the debt amount. The savings achieved are similar your merchant saves 50-70% a week in payments. The total cost however is far less with restructuring and it moves far faster, I typically have new agreements from the lenders in the span of a week, whereas with debt settlement the client will pay fees for 1-3 months before the settlement company even picks up a phone to call a lender and attempts to settle. The lenders also get paid off in full which keeps them as happy as they can be in this situation. To my knowledge, the only person offering debt restructuring on this forum for MCA's is my firm feel free to give me call directly.