Q: What does this process do to my company’s credit?
A: How is your credit now? Chances are since you are considering debt negotiation your credit worthiness is already in trouble or shows serious delinquency. At this point, by using the American Finasco debt restructuring service we will be improving your credit rating by working towards paying off the delinquent debt.
Q: What kind of relationship will I have with my creditors after debt negotiation?
A: Most businesses will not turn down cash at the door. You should be able to do business with them on a COD basis. By taking control of your payables and showing that you are putting forth efforts to reach a mutual payment resolution over time gives you their respect. In time you will begin to earn their trust back and you may even be able to get back on open credit.
Q: What do they (creditors) think about me if I do this?
A: Most of the time, a creditor sees the involvement of a third party debt restructuring company as a positive. Usually the debt is quite past due when we get involved and the creditor has exhausted their efforts to get a response. Our account executives are always available to take calls from the creditors and provide a clear explanation of our client's financial situation; the creditor accepts a reasonable settlement that represents a win-win situation for all.
Q: How can I stop the harassing phone calls from creditors?
A: Upon assignment of your creditor claims, through a Power of Attorney, American Finasco will contact each creditor or their representative and advise them of our involvement. The creditors then understand they must work through American Finasco for resolution of the debt.
A: By giving us your unwanted payables, we can successfully reduce your debt, and relieve cash flow to apply to your critical vendors. If your important vendors are working with you, then you do not need to turn them over to us. However, if they have refused further credit we can negotiate the debt while you continue to buy product on COD or CIA basis.
A: The American Finasco plan provides one of the key benefits of Chapter 11, the elimination of harassing creditor calls, without the cost of bankruptcy. Bankruptcy should always be a last recourse option if all else fails. (see more) link to bankruptcy page.
A: There is a small administrative fee and retainer upon engagement. American Finasco works on a results oriented basis. Our fees are based on a percentage of what we save you. Your total cost will be less than what you currently owe. In 20 years of debt reduction, our client’s have saved an average of 40% of the debt that was assigned to us, and that’s including our fees! The more we save you the greater our fee. Knowing this, you can be assured that we will get you the best settlement possible in keeping with the financial capabilities you provide.
A. We work with any creditor that is owed money 90 days past due, any debt that has been turned over to a collection agency or collection attorney. Our national network of attorneys allows us to also handle pending lawsuits and judgments at a fraction of the cost of attorney’s locally.
A: American Finasco has an attorney in locations where we have a sales presence. The attorney will file paperwork with the courts and become the attorney of record on any suit filed against your company and referred to him/her by American Finasco. If you are located in Houston and a creditor you deal with in Chicago is suing you, we have an attorney in Chicago to represent you.
Q: What if a creditor refuses to settle and sues’ me?
A: We are 95% successful in achieving a reduction in negotiating with creditors. However, in some situations creditors or their attorney’s will not negotiate a reduction. In these cases we negotiate a payout plan within our clients financial capabilities. Full payment plans are only done with our clients pre-approval or request.
A: No. We advise our clients not to consider assigning us creditors that they are able to buy from on credit, and are critical vendors. The debt assigned should be at least 90 days delinquent.
A: If we are working with a company on their corporate debt, we will also look at possibly helping them with some of their personal debt, if they are owners or of the management team. This debt should also be at least 90 days past due and a Power of Attorney will be needed for each person named as a responsible party. If we cannot assist you in your personal debt we recommend our consumer debt affiliate Good News Debt Relief. Click here for the Good News Debt Relief website.
Q: Why can’t I negotiate with my creditors on my own?
A: Dealing directly with your creditors on past due debt is very emotional. A commercial debt management program removes the emotion and is the best way to get you out of debt with creditors quicker and more efficiently than if you attempted to do this on your own. Creditors prefer to deal with debt management professionals to be certain that the business has a plan in place to restore their financial stability.
Since American Finasco’s debt management program is geared toward creditors rather than litigation and bankruptcy, this compels creditors to agree to waiving fees such as, late fees, over limit fees and interest charges. American Finasco will protect your assets and work closely with creditors to come to a realistic agreement to prevent litigation.
An Aluminum Extrusion company in Texas assigned one lawsuit claim of $228,483.46, for delinquent employee staffing fees for its manufacturing plant. The client was in default with his Asset Based Lender and this lawsuit was a major factor in the default.
A settlement was negotiated for $95,000. American Finasco not only saved the client $108,483.46 but the Asset Based Lender released the default on his loan. The client gives American Finasco credit for saving him thousands of dollars, preventing a judgment being filed, and stopping the Asset Based Lender’s foreclosure proceedings.
