Business loan debt can become overwhelming. It is vital to understand the best options available to you, one of which is to settle business loan debt. Before you attempt to settle business loan debt, it is important to have a clear understanding of your business loans as well as any other debt that the business owes.
How to Settle Business Loan Debt
Step 1: Understand your business loan
- Is it a secured loan through inventory, property or receivables?
- Who issued the loan, a private bank or a government program (ie: Small Business Administration (SBA) loan)?
- How were the funds given, through line of credit or a credit card?
Step 2: Know the status of business loan
- Are your payments current, delinquent or in default?
- Are you facing a business loan lawsuit?
- In most cases, banks and lenders do not consider negotiations until debt is defaulted, charged-off or placed in collections.
Step 3: Set your goals and budget
- Determine what funds are available to repay any business debts. If you do not have funds available, you should explore ways to increase income and considering borrowing from friends and family. If you do not have funds to put toward this, a settlement may not be reached. As a result, you may be at greater risk for collections or a business loan lawsuit.
- If you do have the funds readily, available whether in one lump sum or for monthly payments, then a settlement for your business debt can be reached. By reaching a settlement, which is inclusive of collection fees and interest charges, you will see an increase in savings to debt.
- A lender may also be willing to restructure a business loan if you are able to make monthly payments that are affordable to you.
- Contact an attorney immediately if you have been hit with a lawsuit, as you have a limited amount of time to take action.
If you are requesting to reduce your business debt, lenders may require proof to demonstrate your financial hardship. A lender will use their own judgment and protect their own interest when taking into consideration business loan settlement.
BUSINESS LOAN DEBT SETTLEMENT LAWYERS
Our experienced business debt relief lawyers will explore every option to settle your business loan debt while protecting your interest. Whether it’s a small business loan or Merchant Cash Advances, our attorneys will help you create strategy that works best for your specific financial situation. Schedule your free initial consultation today.