Business debt relief
Business debt relief
For owners squeezed by merchant cash advances, SBA-backed loans, business credit cards and personal guarantees. How negotiating with funders and lenders works, what it can and cannot do, and where to start.
Not a loan, not a refinance: we negotiate what the business already owes
The plain terms
Four things to know before you call anyone.
The same four things are true whoever you talk to about business debt, us included.
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The goal
Change what is due to something the business can carry.
A lower payoff, a longer schedule or smaller debits. Funders do not have to agree.
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The cash
Keep the business running while you negotiate.
Payroll, rent and suppliers come first. A plan for the cash comes before any offer.
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The risk
Collection can continue, and so can lawsuits.
Some funders send notices to your customers or sue. A personal guarantee can reach your own assets.
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The advice
We negotiate. Attorneys give legal advice.
If you have been sued or served, talk to a business attorney right away.
In this guide
Business debt, by what you owe.
Each page covers one kind of business debt: how it works, what can be negotiated, and what to watch for.
Most asked about
Merchant cash advance debt relief
When daily or weekly debits are draining the account: how MCA contracts work, what funders will and will not negotiate, and the mistakes that make it worse.
- Merchant cash advances
- Stacked advances
- Daily debits
- Who it is for
- Owners of open or closing businesses who cannot keep up with advance payments
- Warning signs
- A second advance to pay the first, a default letter, a notice to your customers
- What it is not
- A new advance, a loan or a refinance
Merchant cash advance
The UCC 9-406 notice
Why a funder writes to your customers, and what it does to your cash flow.
UCC 9-406 noticesSBA-backed loans
SBA loan default
Your options before and after a default, and why talking to the lender early matters.
SBA loan defaultYour own money
Personal guarantees
When business debt becomes your debt, and what can be negotiated.
Personal guaranteesCards
Business credit cards
Settling cards the business used and you guaranteed.
Business credit cardsWinding down
Closing a business with debt
What happens to leases, loans and advances when the doors close.
Closing with debtPlanning
Cash-flow consulting
See where the money goes and plan what the business can carry next.
Cash-flow consultingWhat can business debt relief actually change?
It changes the terms of debt the business already has. Nobody lends you anything. Depending on the funder or lender, and on what the business can really afford, negotiation can aim for any of these.
- A lower lump-sum payoff for less than the balance.
- Smaller daily or weekly debits, or a longer schedule.
- A pause while a realistic plan is put together.
- An orderly wind-down if the business is closing.
None of these is guaranteed, and funders and lenders are not required to agree to any of them.
Why are merchant cash advances so hard to get out of?
An advance is usually repaid by automatic debits from your business account, every day or every week, whatever sales were like. When one advance is used to cover another, the debits stack up fast.
Some funders also send a notice to your customers under UCC section 9-406 (Cornell LII, opens in a new tab). After it arrives, your customers may have to pay the funder instead of you, which can cut off cash you need to operate.
Regulators have noticed. The FTC has banned an MCA owner (FTC, opens in a new tab) from the industry over deceptive terms and aggressive collection. Read every contract closely, and have an attorney read it if a funder threatens you.
Is an SBA-backed loan any different?
Yes. SBA-backed loans are made by lenders (SBA, opens in a new tab) and partly guaranteed by the SBA, so both the lender and the SBA rules shape what happens after a missed payment. Talk to the lender early, before a default, while more options are open.
Is it right for you
When business debt negotiation makes sense (and when it doesn’t)
Worth a conversation if
- Advance or loan payments are taking cash the business needs to operate
- You have taken, or are thinking of taking, a new advance to pay an old one
- A funder or lender has sent a default or collection letter
- You personally guaranteed debt the business can no longer pay
Probably not the answer if
- You have been sued and need legal advice first: talk to a business attorney
- The business can pay in full if it gets a few weeks of breathing room
- You want a new loan or advance: we do not offer either
- The debt is payroll tax or other tax debt
Things you should know
The downsides, stated plainly.
Read these before you talk to anyone about business debt, including us.
- Business debt negotiation is not a loan and does not lower what you owe until a funder or lender agrees in writing.
- Funders and lenders may keep collecting, report to business credit bureaus, or sue while talks go on. A personal guarantee can make you personally liable.
- Merchant cash advance contracts differ. Some funders will not negotiate, and results depend on your contracts and your cash flow.
- Forgiven business debt may be taxable. Talk to your accountant before you agree to any settlement.
- We do not give legal or tax advice. If you have been sued or served, talk to a business attorney right away.
- Fees apply. Ask for every fee in writing before you agree to anything, with us or anyone else.
Notes on the figures and claims above
- 1Business debt negotiation results depend on your contracts, your funders and lenders, and your cash flow. No outcome is guaranteed. Funders and lenders may keep collecting, report to business credit bureaus or sue, and a personal guarantee can make you personally liable. Forgiven business debt may be taxable.
Straight answers
Business debt questions, answered straight.
Rather hear it from a person? 866-659-7966
Is a merchant cash advance a loan?
Most MCA contracts call it a purchase of future sales, not a loan. How that plays out depends on your contract and your state, which is a question for a business attorney.
Can you stop the daily debits?
Not on our own. Some funders agree to lower or pause debits while a deal is worked out, and others refuse. Talk to an attorney before you block debits or change bank accounts, because many contracts treat that as a breach.
Will this affect me personally?
It can. If you signed a personal guarantee, the lender can come after you personally when the business cannot pay. That is why a guarantee is part of any negotiation.
Do you give legal or tax advice?
No. We negotiate and help you plan cash flow. For legal questions, talk to a business attorney. For taxes on forgiven debt, talk to your accountant.
Sources
Where the facts on this page come from. Each link opens the original in a new tab.
- 01 Cornell LII UCC 9-406: Discharge of account debtor; notification of assignment (opens in a new tab)
- 02 FTC FTC case leads to permanent ban against merchant cash advance owner (Oct. 2023) (opens in a new tab)
- 03 SBA Loans: SBA-backed loans are made by lenders (opens in a new tab)
- 04 FTC Small businesses: business guidance (opens in a new tab)
- 05 IRS Topic no. 431, Canceled debt: Is it taxable or not? (opens in a new tab)
Next step
Talk it through with a real person.
Call 866-659-7966, or start with the four short steps. Nothing is signed until you say yes.
Four short steps
Your estimate first. Contact details last.
- 1How much you owea close guess is fine
- 2What kinds of debtpick all that apply
- 3Which state you live inchecked before anything else
- 4Your estimate, then a real person if you want one