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  1. #1
    Member Reputation points: 1135 Cambridge's Avatar
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    Business Debt Relief Companies - Need Advice From The Forum

    I have a company that I've worked with for several years. The business has been running strong for 20 years and it's very profitable, but lately they've taken on so much debt, bank debt, credit line max debt, even daily loan debt, I believe mainly due to a divorce and some other personal stuff, and it's getting out of hand. The daily payments alone are 1/3 of his monthly gross, and that's not even counting the traditional bank loan monthly payment. They're over leveraged and I'm not sure what to do.

    I have been seeing the debt relief companies pop up all over, one in particular is offering 6% of total consolidation, which for this client, could be a substantial amount for me.

    I need to know what I'd be getting my client into, the pros and cons. I need to know what the long term effects would be, how it works, what these companies are doing (I realize they're settling) but what does that do to the business? What would that do to a business with a traditional bank loan (not talking about settling that one) but what would it affect?

    Credit (personal and business), future ability to fund, costs, the basic low down of what this is all about. I hear from the sales reps and they make it sound like this is the best thing since sliced bread, but it seems moldy to me, and maybe I'm wrong. And is 6% even a good deal as an ISO with these companies?

    I'd honestly pass on the 20-30k I could make on this deal if it destroys a company that's been in operation since the 90s. I'm not in the business to do that. But if this is an option that should be considered, then I'd like to hear from you all about why, and if not I need to hear why not.


    Any advice would be greatly appreciated, please!
    Last edited by Cambridge; 03-07-2017 at 07:56 PM.

  2. #2

    Business Debt Relief Companies - Need Advice From The Forum

    Sounds like your customer has reached the point of no return. Restructuring of debt has been around for hundreds of years on a personal level, corporate level and even on a government level (Italian banking system and Greece, Venezuela) as recently as 2016. The real question is can they survive if they don't restructure the debt?

  3. #3
    Senior Member Reputation points: 2218
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    Quote Originally Posted by cambridge View Post
    I have a company that I've worked with for several years. The business has been running strong for 20 years and it's very profitable, but lately they've taken on so much debt, bank debt, credit line max debt, even daily loan debt, I believe mainly due to a divorce and some other personal stuff, and it's getting out of hand. The daily payments alone are 1/3 of his monthly gross, and that's not even counting the traditional bank loan monthly payment. They're over leveraged and I'm not sure what to do.

    I have been seeing the debt relief companies pop up all over, one in particular is offering 6% of total consolidation, which for this client, could be a substantial amount for me.

    I need to know what I'd be getting my client into, the pros and cons. I need to know what the long term effects would be, how it works, what these companies are doing (I realize they're settling) but what does that do to the business? What would that do to a business with a traditional bank loan (not talking about settling that one) but what would it affect?

    Credit (personal and business), future ability to fund, costs, the basic low down of what this is all about. I hear from the sales reps and they make it sound like this is the best thing since sliced bread, but it seems moldy to me, and maybe I'm wrong. And is 6% even a good deal as an ISO with these companies?

    I'd honestly pass on the 20-30k I could make on this deal if it destroys a company that's been in operation since the 90s. I'm not in the business to do that. But if this is an option that should be considered, then I'd like to hear from you all about why, and if not I need to hear why not.


    Any advice would be greatly appreciated, please!

    If the business is struggling with the debt payments, by far the best thing for the business to do is for them to reach out to their current advance company's and ask for lower payments. Most MCA companies are willing to work with their merchants- after all , we as a funder make nothing if the business goes out of business.

    Using one of these debt relief companies is, in my opinion, one of the WORST things the business can do. For one, they are now paying the debt relief company a fee to do something they couldve easily done themselves. And funders are much more willing to work out a payment plan directly with the merchant. Many funders will no longer negotiate with these debt relief company's due to laughable settlements they offer- the second they are contacted by a debt settlement company and the merchant stops responding, they will just file COJ or lawsuit and go after the company's assets. That will destroy the business. Not to mention that no one would ever fund the company ever again if they somehow survive it.

  4. #4
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    Debt Relief Companies

    Hello how are you doing today I have a great debit relief company if your still looking give me a good email and phone number for you

  5. #5

    Business Debt Relief Companies - Need Advice From The Forum

    ^ don't be like this guy, his lack of punctuation in that sweet run on sentence and the improper use of
    "Your" should tell you something about him.

    Stay away from these types of companies, they are a cancer to this industry and the merchant. They contact me daily to refer defaulted merchants to them. They all have the same pitch too, quite pathetic if you ask me. Most of these guys are ISO's that couldn't hack it in cash advance too. Also, if any lender caught wind of you referring their active clients to a debt consolidation company, you'd get yourself cut off everywhere and most likely wind up selling debt relief programs. Don't be that guy, have your merchant reach out to whomever and restructure their payments. Hope this helps.
    Last edited by Anthony@fundry; 03-22-2017 at 09:47 PM.
    Anthony
    Senior Funding Coordinator
    Anthony@fundersconnect.com
    Direct: 201-523-2596
    Fundersconnect Is An Approved Vendor of Delta Bridge Funding Products

  6. #6
    Senior Member Reputation points: 5023
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    That's not really true and while the guy selling his services can't spell US English, the truth is that a lot of those companies create an alternative to Chap 11 and or 13 or even 7. Not that I think personally it's the best alternative but sometimes the only one. But maybe his "debit relief company" can do something...lol. Or maybe just a work out company.

  7. #7

    Business Debt Relief Companies - Need Advice From The Forum

    Correct me if I'm wrong since I'm not a funder and I don't handle collections, but once a company/merchant files BK there is nothing to go after even if you have a COJ correct? If a merchant is in BK then maybe I can see how a company like this can be somewhat helpful. If the merchant is not in BK and has the capability to restructure their payments and get back on track, then I find this to be a terrible solution.
    Anthony
    Senior Funding Coordinator
    Anthony@fundersconnect.com
    Direct: 201-523-2596
    Fundersconnect Is An Approved Vendor of Delta Bridge Funding Products

  8. #8
    Senior Member Reputation points: 158630
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    "^ don't be like this guy, his lack of punctuation in that sweet run on sentence and the improper use of
    "Your" should tell you something about him.
    "

    HEADLINE: All old and new iso's .....dwayne webster yellowstone cap llc the sheep dog

    Dwayne webster yellowstone capital is looking for new iso's to work with are you looking for some one to make sure you get your deals done funded and create opportunity for your reps and your office lets make money lets make deals happen i work with all grades and will give a offer according to the situation im also willing to offer nice payouts on your deals give me a call or shoot me a email documentfunding@yellowstonecapllc.com

    Pot meet kettle, kettle this is pot.
    C'mon man! A lot of shops need to get it together.
    Last edited by HDF; 03-22-2017 at 10:10 PM.

  9. #9

    Business Debt Relief Companies - Need Advice From The Forum

    ^ you win lol. It doesn't get any worse than that. I'd give your post a thumbs up if I was able to do it from the app.
    Anthony
    Senior Funding Coordinator
    Anthony@fundersconnect.com
    Direct: 201-523-2596
    Fundersconnect Is An Approved Vendor of Delta Bridge Funding Products

  10. #10
    I don't know whether these debt restructuring companies are good or not, BUT in any case, I know for a fact, that once a merchant defaults, lenders won't fund them again, even if they defaulted with a competitor lender. So it's not that the merchant isn't already in a bad situation when they seek out MCA or loan restructuring. In most cases, it's been my experience that when a merchant is in a situation where they cannot pay the MCA or loan, or that it's eating up all their cash flow, they already tried contacting and negotiating with the lender, and the lender will at the most lower payments maybe 15% for only for a few weeks, which really doesnt help the merchant. So, isn't it better for a merchant, who probably isn't a good negotiater as one of the negotiating lawyers these comanies have working for them, hire one of these companies to lower the burden of their MCA or loan payments by 20-60%, and push that payment out for a much longer period, rather than defaulting altogether?I think what you have to watch out for is restructuring companies that ask for money upfront.
    Last edited by ava712; 09-21-2017 at 11:33 AM.

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