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The 7 Best Business Debt Management Companies For 2021

April 5, 2021
Bill Kimball

business debt management

When you have a plan, it’s easier to avoid making emotional spending decisions. A plan also makes things simple by clearly specifying how much money you can spend each month while staying on track to get out of debt. The debt management plan will tell you exactly how much you must pay each month to get out of debt. Your payment amount will be determined based upon how much you need to pay to eliminate your debt in a certain period, usually 3 to 5 years. Your credit report will show that your accounts are in a debt management program, but that won’t negatively affect your score. Still, potential lenders will see that you’re in a DMP and that’ll likely make them less willing to lend to you. If your struggling with business debt let us guide you to financial success.

You won’t pay any fees unless they secure a settlement that meets your expectations, and as with most providers your initial consultation is also at no cost. However, we had major issues with accessing their website , and even the BBB hasn’t issued a rating. Given that it was hard to find any independent customer reviews of their services, Wininger, Douglas and Green fails to secure a high ranking among their competitors. Of course, it’s still critical for you to play your part by making timely payments, but a debt management plan will take tons of administrative rid of your hands.

Drowning in personal or business debt may be a threat you can’t ignore. Accumulating an excessive amount of debt is among the first reasons that about half small businesses fail within one year. It’s difficult to say whether or not Goldman & Wise has a strong reputation for handling business debt. There are lots of testimonials on their company site, but there’s no independent verification available. The only listing for a Goldman & Wise with the Better Business Bureau is for a collections agency in Florida, not for this debt management company located in Georgia.

business debt management

After all, no creditor will settle for less when they think there’s a chance you’ll pay what you owe. Debt settlement is when a debtor negotiates with a creditor to accept a lower payment than the debtor owes as full payment. Simply put, it’s a way to resolve debt with a smaller payment than what you owe. Not only will it simplify your finances, but you’ll also have a clear end goal in sight since your consolidation loan will have an end date, assuming you stay current on your payments. Plus, depending on your situation, debt consolidation can save you a significant amount of money in interest. All that said, if your credit is good enough to qualify for a low-interest loan or zero-percent credit card, and you have a detailed plan to stay on track, debt consolidation can be a great tool.

When you request a waiver, you are requesting that we terminate collection action on a debt. Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at .

Bill “No Pay” Fay has lived a meager financial existence his entire life. His work has been published by the Associated Press, New York Times, Washington Post, Chicago Tribune, Sports Illustrated and Sporting News, among others. His interest in sports has waned some, but his interest in never reaching for his wallet is as passionate as ever. If you cannot bail out your business with private funds, you need to identify areas where you can reduce costs. Perhaps you can sublease unused space or sell off unused equipment. While shrinking your workforce is not an attractive option, it may be necessary to keep your business alive. For example, you can choose to give clients a 30-day payment term instead of 90.

I Had Been Through About 5 Different Credit Counseling Agencies Before I Found United Settlement

Unlike debt management, bankruptcy may be a formal legal process that takes place in court. Additionally, you’ll use bankruptcy to discharge specified secured debts, which isn’t possible with debt management. Moreover, whereas debt management doesn’t directly affect your credit, a bankruptcy stays on your credit report for 7 to 10 years. Besides, once you enroll during a debt management plan, your MasterCard providers will usually require that you close your accounts.

  • These companies may impact how and where the services appear on the page, but do not affect our editorial decisions, recommendations, or advice.
  • Most of these services also help you develop a budget to manage your finances going forward.
  • Despite being in business for over 30 years, this business debt management service doesn’t have a rating from the Better Business Bureau.
  • When you do this, you combine your different lines of credit and loans into one account.
  • Whether your creditors are vendors or banks, communicate with those you owe money.

Furthermore, offering an early payment discount can also be a good strategy to help collect unpaid invoices. Consider selling off office supplies, equipment, and other items rarely used by your company. You won’t lose customers by raising the prices if you have the right strategy. Creating a loyalty program is a great way to increase customer satisfaction. According to a study, 82% of people most likely shop at a store that has a loyalty program. Terms and conditions, features, support, pricing, and service options subject to change without notice.

Do You Qualify For Debt Relief?

We also recommend that you look at the Case Solutions page on the American Finasco site. From a charter school in Arizona to an aluminum extrusion company in Texas and more, this company has proven results. Just browsing through a few of the case studies, you’ll see savings over $100,000 almost every time, usually representing a reduction of debt in the range of 50-60%. What steps should you take to work with National Credit Partners? The easiest way is probably to call their toll-free number, and they advertise 24/7 availability. Although it says that you’ll get an instant quote when you fill in your information, that’s not accurate. Instead, we were taken to a “thank you” page that said we would need to call their toll-free number to get our instant debt savings quote.

business debt management

You’ll need to provide specific information about your company, including the causes behind your cash flow problems and/or disputes with creditors. Whether you need business debt relief, cash advance restructuring, business loan modification, or some other combination of business debt management. Of course, as with any provider, we encourage you to consider the details of your specific plan before making a commitment. However, with such a strong reputation with the BBB, this business debt management service can be trusted to develop a plan that works for your company. As with most of the business debt management services we evaluated, you begin the process either by filling in an online contact form or by calling their toll-free number. You won’t have to commit to working with Creditors Relief until you’re completely comfortable with all the terms and conditions of the strategy designed for your unique requirements for debt management. Creditors Relief believes that the best comprehensive debt relief plans are sustainable, affordable, and suited to each individual company’s needs.

Finally, with debt management, you have a fair amount of flexibility as to how you want to handle your debts. When you file bankruptcy, though, you’ll be forced to abide by whatever course of action the court orders. Bankruptcy is a legal process by which an individual can reduce or discharge their secured and/or unsecured debts with some limitations.

Recover Past Due Accounts Move Forward With Your Business

The important thing is to make sure you’re considering the full scope of a debt management plan’s pros and cons. Whether you run a for-profit or nonprofit business, the problems that excessive debt causes and the solutions to those problems are similar. Of course, as a nonprofit, you have restrictions on how you can raise funding, but you can enroll in a debt management program just like a for-profit business. Whether you enroll in a debt management plan with a credit counselor or you manage your debt yourself, simply having a plan is critical.

This representative will review the steps that will be taken, gather any necessary information, and provide answers to any questions you may have. National Credit Partners has more than 20 years of combined experience when it comes to business loan modification, business debt relief, and other solutions for managing commercial debt. They take an individual approach to every case that comes their way – you won’t find any cookie-cutter solutions for your unique business situation. One of the most compelling reasons to use PCS Debt Relief is their transparency. When you have your complimentary consultation with one of their debt analysts, it’s possible that you may need a service that they don’t provide. Also, as you work through the debt relief process, you’re given total access to the what, when, and why of any actions they are taking on your behalf.

You’ll even stop receiving—or receive fewer—annoying calls from your creditors, which can assist you in specializing in your business. The company you hire will evaluate your situation, help you create an idea, affect your creditors, educate you about debt management, and supply you with various debt relief options to settle on from. You’ll pay one monthly payment to them, and they’ll use that cash to pay your creditors, which reduces your administrative burden.

It’s rare to find a company that has zero complaints filed at the BBB, but this business debt management service has that distinction. In business for over 30 years, American Finasco has a long track record of successfully helping more than 10,000 businesses with commercial debt management needs.

Ask your lenders about available loan-consolidation programs, which can group multiple loans into a single monthly payment. Also, put paying debts with a personal guarantee at the top of your to-do list. With these terms, creditors can take your personal assets if your business cannot pay. Your home, car, or personal savings could be used to pay your small business debt. However, if your revenues do fall within that range, this is an excellent service for you to consider. American Finasco enjoys a stellar reputation, as demonstrated by an “A+” rating and accreditation from the Better Business Bureau.

This will allow you to make a clean break from a failed business, although your personal credit rating will be impacted negatively for seven years. Enlisting the help of a professional debt-restructuring firm is yet another option if previous efforts to climb out of business debt have failed. Debt-restructuring professionals negotiate with creditors and collection agencies on your behalf to formally extend, renew or change existing credit agreements. Before attacking business debt, get a good handle of your current financial situation.

Tips For Managing Business Debt

Although it is a quick means of receiving financing, it comes at a pretty penny. This type of financing is often paid back daily and is not amortized.

However, if your business has more debts than assets, you may not be able to find a buyer. If dealing with multiple creditors or collection agencies is taking you away from the more important task of running your business, you can outsource your debt problems to a professional debt-relief company. A reputable firm can negotiate with your creditors on your behalf to settle debts for less than what is owed. This includes the payments on lines of credit, business loans, business credit cards, and outstanding payments due to the vendors. If you decide to hire a professional debt-restructuring company, choose a firm that is prepared to work within the payment and time parameters set by creditors.

Use the proceeds from a low-interest debt consolidation loan to pay your debts, then make payments on that loan. Similarly, if you have no money to make payments, you shouldn’t enroll in a debt management plan. There’s no use committing to several months of payments that you know you’re not going to make.