A shocking number of businesses suffer with insurmountable debt. All it takes is one rough patch and you suddenly fall behind on business loan payments and direct debits to vendors or suppliers. Business debt can be an incredibly difficult thing to get out of, which is why the most recent statistics suggest that hundreds of business file for bankruptcy each year.
The main reason behind this is that a lot of businesses don’t understand their options when it comes to relieving themselves of debt. That’s where this review comes in, as we recently spent some time checking out Delancey Street. As a business debt settlement partner for real businesses with real struggles, Delancey Street has managed to settle thousands of debt cases and reduce company’s monthly repayments by up to 55%.
Their service could be ideal for any businesses that currently need help – but what exactly can they do for you? We did some digging, and here’s our honest review.
Delancey Street – Company Overview
Who are Delancey Street and what is their main goal? The company primarily manages business debt settlement, offering help with money owed through:
- Merchant Cash Advances
- SBA Loans
- Commercial Mortgages
- Equipment Leases
The list is surprisingly long, which goes to show that Delancey Street truly can handle any type of business debt case.
What’s crucial to understand – and we were slightly confused before carrying out more research – is that this is a business debt settlement company not a business debt consolidation company. The key difference is that Delancey Street works with you and your creditors to try and reach some sort of settlement. As they say themselves, this can sometimes be a restructured payment plan that reduces your payments by 30-60%, or it could be a lump sum settlement for far less than you owe.
Debt consolidation companies will simply pay off your debts with a big loan that they then charge you for. It can work in some cases, but if you truly wish to be free from business debt, then a settlement agency like Delancey Street works the best.
How Does Delancey Street Settle Business Debts?
The interesting thing about Delancey Street is that it deploys the same process regardless of what type of business you are or how much money you owe. The procedure is the same for small businesses and huge corporations – and it involves six key steps:
- Triage: The company holds a confidential phone call with you to establish your position.
- Leverage Report: The team’s attorneys conduct research on your funders and see where each of them is weakest, which helps when it comes to arguing settlements.
- Standstill: A really key part of the procedure that involves sending out stop-pay and restructure letters. Delancey Street also ensures that they are your contact point from now on, so you shouldn’t receive calls or texts from any debt collectors.
- Negotiation: Using all of their legal experience, the Delancey Street team negotiates settlements with various lenders/funders.
- Documentation: Once the settlements have been agreed, the company that papers them correctly to ensure they’re legally tight and you don’t receive any future surprises.
- Post-Resolution Coaching: Unlike most business debt settlement companies, this one helps you rebuild after getting out of debt. This can include a cash-flow rebuild plan, vendor renegotiation, and guides on how to avoid falling into the same position again.
It’s a very thorough procedure and the company says it goes through each of these steps whenever it deals with a business debt settlement case. You’re certainly under more care than you would be if you called a typical debt settlement hotline, which usually patches you into a call center where you receive very basic and generic advice without any real outcomes.
What This Company Does Well
Looking at the overall service on offer from Delancey Street, it’s pretty clear that it excels in a few key areas:
- Provides genuine legal guidance: Your cases are put in the hands of legitimate attorneys with experience in business debt settlement, and they work on your behalf to negotiate with whoever you owe money to.
- Actually helps businesses get out of debt: It’s a no-brainer, but when you contact a business debt settlement company, you want to get out of debt. Delancey Street has a proven track record of doing this by either wiping out over half of a company’s debt or negotiating restructured payments that let businesses slowly get out of debt without negatively impacting their cash flow.
- Support after the settlements: The extra support you receive after negotiating settlements is really helpful. It’s a key way to encourage businesses to bounce back following a debt struggle without falling into the same holes as before.
Following on from that final point, there’s a really interesting statistic from the Delancey Street website that says companies that have worked with them remain debt-free at least 12 months later, so it’s a system that clearly works.
Are There Any Concerns To Mention?
To be honest with you, Delancey Street provides a service and is exceptionally good at that service. There’s nothing that negative to mention about the company, though the only thing to keep in mind is how they charge for this service.
You’re charged a flat rate based on your enrolled debt, but this comes with no maintenance fees or anything like that. Payment of this fee will also be negotiated as part of your settlement so it’s easy for you to manage. The one thing you may want to be aware of is that the charge is for enrolled debt, not debt that they clear for you.
So, if you enroll $100,000 of debt but they manage to clear $50,000, the fee still applies to the original $100,000. This isn’t a slight on the company, but it’s a key point that you should know if you’re going to get in touch with them about business debt settlement, just so you’re not confused about how payments work.
Conclusion: The Smart Way To Settle Business Debts
After looking at Delancey Street and seeing what the company can do for businesses of all sizes, it’s clear that this service is essential for any business in debt. If you’re struggling to make monthly payments and keep slipping further into debt, then a business debt settlement negotiation could be exactly what you need. Based on what we’ve seen, Delancey Street certainly looks like one of the best to provide this.