Testimonials

From the President of a Gift Catalog Company in MD

I would like to extend my appreciation to American Finasco for the outstanding results of the service that was provided to my company. I discovered American Finasco through their website during my search for an organization that assisted commercial businesses experiencing financial distress. We assigned 127 creditor claims that totaled $315,643.00.

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What Is A Business Debt Settlement?

A business debt settlement is the most viable option that your business can have instead of filing for bankruptcy. Though a bankruptcy will mean not having to pay for your company’s debts anymore, there is little or no chance at all that it will ever rise again. The debt settlement is basically an approach that will let you and the creditor agree on a reduced balance which will be considered payment in full. The new balance will be spread over a certain period that is agreed upon by both parties.

However, it is not the same as debt management or debt consolidation as these two mean that all your debts will be consolidated and a single monthly amount will be paid for the consolidated amount.

Advantages Of A Business Debt Settlement

Aside from the fact that your company will not have to file for bankruptcy, there are numerous advantages of a debt settlement. These include:

  • Increased cash flow. When your company has a large debt, it may adversely affect its cash flow. However, with a debt settlement program, a large part of the debt may be forgiven which may mean an increase in cash flow.
  • Avoid unnecessary fees. When a debt is settled through this method, you may avoid paying attorney’s fees and other similar fees.
  • Sounder sleep. When debt is settled, you may be able to sleep more soundly.


How Can A Business Debt Be Settled?

Let these steps help you settle your business debt.

  • Make sure you have exhausted all efforts and means to repay your debt.
  • Prove to creditors that you are no longer able to repay your debts. You can do this by calculating your debt-to-income ratio or DIR by dividing your total monthly payments by your gross monthly income.
  • As soon as you already have your DIR, you may contact your creditor to open lines for negotiations. It is best that you speak with a debt counsellor instead of a customer service representative so that you can ask for a debt settlement.
  • Once you receive their settlement offer, you may also offer your own proposal. However, don’t haggle too much. It is already a good thing that the creditor is considering giving you a settlement.
  • If you have already arrived at a desirable agreement, you should review this with a trusted person like your company lawyer or accountant.


A business debt settlement is a sure relief but you should remember to avoid situations that can lead to incurring huge debts. Even if a part of your debt has been forgiven, it does not change the fact that you paid a large amount to erase your debt.

Do not spend more than what your business can afford. And most importantly, make sure you are spending money wisely so that a business debt settlement will not be necessary.

Contact American Finasco today to get started.

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Stephen Wright and Guest Mitch Vicknair, American Finasco - Price of Business