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How Much Can I Expect to Save Through Business Debt Settlement?

February 24, 20245 min read

IF YOU’RE LOOKING FOR A BUSINESS DEBT SETTLEMENT COMPANY, VISIT DELANCEY STREET. CLICK HERE NOW.

How Much Can I Expect to Save Through Business Debt Settlement?

If you run a small business that’s struggling with debt, you’re probably wondering just how much relief you can get by working with a professional debt settlement company like Delancey Street. The potential savings can be substantial, but the exact amount depends on several key factors.

A Realistic Range of Savings

Most reputable debt settlement companies quote potential savings between 30-60% off total unsecured business debt enrolled in their programs. However, the savings you actually achieve depends heavily on:

  • Your specific debts and balances
  • Your creditors and their policies
  • The negotiating skill of your debt expert
  • How long you stay committed to the program

To set realistic expectations, small business owners should think in terms of saving 30-45% through professional debt settlement. Anything beyond 50% in savings should be viewed as a pleasant surprise rather than the norm.

How We Arrive at Those Savings Numbers

At Delancey Street, our debt experts have settled over $1 billion in consumer and business debt over the past decade. From that experience, we’ve found that most creditors will agree to reduce enrolled balances by 40 to 60 percent.However, business owners need to keep in mind that:

  • Creditors won’t agree to reduce debt unless they believe settling is better than not getting paid at all. That means business owners must commit to making regular savings contributions that will eventually fund settlement offers.
  • Creditors have no incentive to settle debt that business owners are still managing to pay each month. That debt needs to become delinquent before creditors get serious about negotiating discounts.
  • The more months a debt remains delinquent, the more open creditors become to deep discounts – but they also grow more impatient and risk handing accounts over to aggressive collections agencies.
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Balancing all those dynamics is complex, which is why it’s so important to have an experienced professional overseeing each case.

The Biggest Factor Impacting Your Savings

While negotiating skill and creditor policies play a role, the #1 factor determining a business’ savings is the total amount of funds they can commit upfront to settlement offers.For example, if a business has $100,000 in credit card debt spread across 5 cards, and can commit $20,000 right now in savings, their expert might project 40% total savings, or $40,000 reduced from debts.However, if that same company can only initially commit $5,000 to settlements, their expert may project closer to 30% total savings despite having the same debts enrolled.The key is that more upfront savings allows debt experts to negotiate larger discounts sooner. Creditors prefer to close accounts fast rather than drag out settlement talks over many extra months.

How Our Experts Determine Potential Savings

During a free consultation, a Delancey Street expert will review a business’ full financial picture, including incomes, expenses, debts, and current savings. We’ll then project a reasonable savings range based on the business’ unique situation.Our experts consider factors like:

  • Total unsecured debt balances – Higher debt means more potential for discounts.
  • Number of accounts – Is debt concentrated or spread across many creditors?
  • Type of debt – Bank, credit union, credit cards, vendors, etc.
  • Age of delinquency – Newer delinquency may limit early savings.
  • Savings ability – More savings means bigger discounts.
  • Ongoing financial changes – Expect improved savings over time.

We’ll then tailor a program length that matches realistic savings goals based on the business’ specific circumstances. There are always variables we can’t fully control, but our experts leverage years of experience to estimate target savings ranges.

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Trusted Debt Relief From a Team You Can Count On

At Delancey Street, we know that business debt takes priority. Our team of debt experts works for business owners – not creditors or collectors. We have only one goal: To help entrepreneurs and small business owners find financial freedom.You can trust that our dedicated advisors will leverage their expertise to negotiate maximum savings on your behalf. Contact us for a free consultation and see how we can help your business finally break free from burdensome debt.

 

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