Business loan help can take many shapes and forms. For well established businesses, a traditional bank loan may provide the additional funding required. For startups and small business owners acquiring capital is not as simple as filling out paperwork at a bank. A low credit score and inability to demonstrate profitability are perhaps the biggest hindrances to access of funds. Startups and new entrepreneurs then turn to Merchant Cash Advances for finance. One of the top contenders for business financing, Merchant Cash Advances are business transactions that involves the purchase future credit card sales of the company. Since this is merely a sales transaction, Merchant Cash Advance companies do not have to abide by an usury laws. This lack of regulation has resulted in many unsavory ethical practices by lenders. Some of the most common include predatory lending, outrageous fees and partial agreements. If you have found yourself in the unfortunate situation of overwhelming Merchant Cash Advance debt and suspect that you may be a victim of unfair practices, you are not alone.
Doctors, auto shop owners and even tutors have fallen prey to Merchant Cash Advance lenders. As an intimidation technique, many such lenders will lead you to believe that you have no option but to simple incur debt after debt digging yourself deeper into a hole of financial distress. It is important to know that there options available to you.
Merchant Cash Advance Debt Settlement
One option to not only alleviate stress from not only Merchant Cash Advances but can also provide business loan help for various other debt. During the debt settlement process, a debtor proposes to pay back the debt a reduced amount based on what the company can realistically afford. It is recommended to seek out legal representation when dealing with creditors during the debt settlement process. Creditors are less likely to engage in intimidation techniques when you have a lawyer liaising on your behalf. Furthermore, during debt settlement discussions, creditor are looking out for their best interest. You need a professional on your side protecting your best interest. Keep in mind that there are certain eligibility requirements for debt settlement. If you do not qualify, debt negotiation is an effective alternative.
Business Loan Help – Debt Negotiation
Debt negotiation gives a debtor the opportunity to propose changes to the agreement. For example, a debtor may request reduced monthly payments, changes in the interest rate or the frequency of the payments. Generally when you negotiate debt, the full amount has to paid.
Business Loan Help – Filing A Chapter 11 Bankruptcy
Another option for business loan help is filing a Chapter 11 bankruptcy. It gives business owners a chance to reorganize their debt for the purposes of regaining profitability. In order to file a Chapter 11 bankruptcy, the entrepreneur has to propose a payment plan indicating how creditors will be paid over time. It is advisable to speak to an experienced business debt relief lawyer if you are considering filing bankruptcy. It can be lengthy, complicated and expensive if it is not done correctly. In addition, not getting proper legal counsel for a Chapter 11 bankruptcy case can have long-term adverse financial implications for your business.
At ZocLaw.com, our business debt relief lawyers have decades of experience providing business loan help to entrepreneurs who have fallen prey to predatory lending practices. Schedule your free initial consultation today.