Few things kill businesses as quickly as debt. And debt is something that many business owners struggle with on a daily basis. According to a Gallup poll, over a third of small business owners are feeling the burden of debt. For many, the debt isn’t small, either. A study by Experian found that the average US small business owner has debts of $195,000.
For companies drowning in debt, business debt settlement companies offer a way out. But finding the best debt settlement company can be difficult. Business debt reduction companies act as an agent on your behalf, negotiating with creditors in order to reduce the amount that you owe. It is important, therefore, to find a company that you can trust and that will work hard to get the best deal possible.
Don't worry, though, we’re here to make finding a debt settlement agency simpler. In this article we’ll discuss what to look for before selecting a business debt settlement company and how you can tell if they are the right company for you.
What does a debt settlement company do?
Before identifying what to look for before choosing a debt settlement firm, let’s first discuss what this type of company does. A debt settlement company can significantly reduce the amount of debt that your business owes. They do this by negotiating with your business’ creditors, making clear that you won’t be able to pay the full amount and working to a compromise. As a result, your personal assets are protected and your business can get the debt relief needed to carry on trading.
How to find the best debt settlement companies
Finding the best debt settlement firm isn’t difficult if you know what to look for. The most important things are to understand the company’s offering and to ask the right questions.
Identify the right type of debt settlement company
First things first, you need to narrow down your search by identifying the right type of debt settlement company. Many companies will specialize in business or personal debt. If you’re trying to deal with a business debt, you need to search for business debt specialists rather than personal debt experts or companies that offer both services. By choosing a company that specializes, you can ensure that an expert in your kind of debt will be working your case.
Look for past success and reviews
A great track record is a good sign that a debt settlement agency knows what they are doing and can get the result that you are looking for. Customer reviews and complaints are your first clue as to the company’s past successes. As, too, are case studies of previous settlements that demonstrate the outstanding balance, the debt reduction, and the final settlement. Where possible, ask to speak to these clients to verify the validity of the claims and to receive a candid view on what it’s like to work with that particular debt settlement company.
Check for expert negotiators
When you trust someone to negotiate on behalf of your company, you want an expert handling your case. What you don’t want is an inexperienced, untrained agent who doesn’t have sufficient legal knowledge to put your business in the best position. With that in mind, identify debt settlement firms that only use experts to negotiate debts. At Creditor’s Relief, for instance, we are owned and led by an experienced attorney and we have a combined 25 years of experience.
Use free consultations wisely
Many reputable debt settlement companies will offer a free consultation with business owners. This is a chance for the company to find out more about your business and your debt before taking you on as a client. But it is also an opportunity for you to find out more about the company and get some free advice. The best debt settlement agencies will work with you in your free consultation to develop a budget and implement ways for your business to save money and reduce debts immediately, regardless of whether you hire them or not. Don’t do all the talking in the consultation, however. Make sure to ask some of the questions below.
Get answers to important questions
Once you have a shortlist in place, you should ask questions that will help you get a better idea of the kind of service and results to expect. The most important question to ask is about the fees your business will need to pay. Debt settlement is more of an art than a science and no company will be able to give you an exact answer as to how much you will save. That being said, companies should make clear their fee structure and outline how much you can expect to pay the company. Once the fees have been made clear, you should probe the company’s history.
Ask how long they have been in business for, how many companies they have helped and what the average settlement discount is. While you’re at it, ask to be put into contact with several previous clients so that you can get an outside perspective of how the company operates. Finally, you’ll want to ask a number of questions that can help you to identify any potentially unscrupulous companies. First, ask if the company can stop all creditor calls. It isn’t possible to stop all calls from creditors and they could be making false promises if they do. Second, ask if taking this action will impact your business credit rating.
The truth is that it will, any kind of debt relief action will impact your business’ credit rating. If they say no, this is a huge red flag. Finally, ask if getting sued is a possibility. While it is rare, it definitely can happen. If they say no, you should consider against using this company.
Get started with a free consultation
If you’re looking for a way to get your business out of debt without declaring bankruptcy, request a free consultation with Creditors Relief. As a leading debt settlement company, we can negotiate with creditors on your behalf to dramatically reduce the amount you owe. Call us today on 877-312-6478 for more information.