script type="application/ld+json"> { "@context": "http://schema.org", "@type": "Product", "name": "Delancey Street", "aggregateRating": { "@type": "AggregateRating", "ratingValue": "5", "reviewCount": "10" } } Negotiating with Lenders for Business Debt Relief | Delancey Street

Negotiating with Lenders for Business Debt Relief

When Cash Flow Dries Up, Take These Steps

Cash flow problems: they come for us all. That juicy angel round or hot new client just…never materializes. Payroll stacks up, while money trickling in dries to a drip. Before you know it? You’re drowning in a sea of red ink.

We’ve been there. Many times. So – what can you do when revenues plummet, but the bills keep piling up? Debt restructuring could offer a lifeline, by negotiating new terms on business loans, credit cards, and other liabilities.

You’re Not Alone (Debt Relief Success Stories)

Global crises like COVID ground entire sectors to a halt. Our client, a fine dining group in Manhattan, faced bankruptcy when COVID restrictions closed restaurants. By leveling with their lenders on cash flow? We negotiated payment deferrals keeping them alive until reopening.

An e-commerce startup raised $25M, only for its supplier to fold during the pandemic crunch. With runway evaporating, we deferred their venture debt payments 18 months, preventing a disastrous shutdown.

Whatever your situation – you have leverage to negotiate workable debt relief if you play your cards right.

Your Gameplan for Negotiating Debt Relief

1. Gather EVERYTHING

You’ll need statements and docs for all outstanding debts: loans, leases, credit cards, you name it. Miss any skeletons in the closet, and wasted time could prove fatal.

2. Prioritize Critical Vendors

Identify can’t-fail priorities: suppliers you’ll DIE without, absolutely crucial equipment leases, that sort of thing. Next comes the avalanche of judgment calls…

3. Triage Remaining Payables

Bills from Mom ‘n’ Pop shops? Let those ride if needed—they’ll likely be relieved to recoup anything. Sophisticated creditors like banks or landlords? You’ll need a strategy for those heavies.

See also  Connecticut Business Debt Settlement Lawyers

4. Get Current Wherever Possible

Even a lump sum payments can hugely impact negotiations by showing good faith. Plus, catching up on a few bills? Laser-focuses your debt restructuring just on critical problem areas.

5. Be Transparent, With a Plan

Full disclosure of your cashflow constraints, business plan with projections, and collateral, separates professionals from amateurs. If the numbers don’t hold water? Neither will the deal.

Creditors want confidence you’ll get back on track – not reassurances masking reality. Prove the path to payback is plausible and relief gets way easier. They’ll take short-term pain IF you show long-term gain for all.

6. Know Your BATNA

BATNA = Best Alternative To a Negotiated Agreement. If lenders won’t budge, face the music: What’s your recourse? Bankruptcy? Asset sales? Walking away?

Go in clear-eyed on your alternatives, so you can make hardball contingency calls versus accepting a raw deal.

How to Get the Debt Relief Deal Done

Despite the hassles, lenders generally prefer restructuring over Draconian enforcement or defaults. You just need to take controlled, well-prepared actions like:

Get Agreements in Writing: ALWAYS get clarity on all terms in writing – zero ambiguity.

Plan Buffers for Contingencies: Build at least 20% wiggle room into your projections. Under-promise, over-deliver.

Request Reasonable Terms: Whether deferrals, reduced payments, or interest-only periods, be realistic. A 2-year full pause is unlikely – 6 months is way more plausible.

Bring in Third Party Backup

Creditors view you more favorably if respectable third parties validate your plan. Potential allies? Investment bankers. Turnaround consultants. Even just your accounting firm lending analytical rigor.

See also  Colorado Merchant Cash Advance Debt Relief Lawyers

Because losing a borrower in default can cost lenders massive sums in fees, lost interest, and recovery expenses? Most will negotiate in good faith, if your proposals show viability.

But if you don’t take controlled, professional steps? Empty stall tactics only dig a deeper hole. Get organized, get advisors, and approach negotiations strategically to fix debt woes.

When to Call in the Professionals

If you lack experience or hitting roadblocks with banks and lessors? A debt negotiation consultant brings massive leverage:

  • Borrowers rarely get lenders’ best offers unassisted: Consultancies live for this stuff, so they’ll secure way better terms.
  • Multi-party chaos gets streamlined and managed: Rather than playing whack-a-mole with various creditors’ demands, a single party handles it all.
  • Strict confidentiality is maintained: News of debt struggles could spook customers and partners. Outsiders provide discretion.
  • Contingency scenarios get planned A-to-Z: Debt restructuring might only solve part of the problem. Consultants map out all next steps.

You Can Get Debt Relief – IF You’re Smart About It

At the end of the day? Lenders want to get paid, just not at the cost of killing the proverbial golden goose. If you make the case for viability pragmatically, transparently:

Debt relief gets way easier, so your business can take a breath – and come out swinging.

Take charge, face reality, organize a data-driven restructuring proposal…and your lenders will meet you at the table. Those who played emergency defense survived 2020’s shocks. Deploy the same focus, and you just might make it through your cash crunch too.

You’ve got this. As long as you take it one step at a time, bringing in expert assistance as needed…

The path to solvency starts today. All you’ve gotta do? Is walk through that first door.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$500,000 MCA Restructured Over 3 Years
"Thanks for helping me in literally 24 hours"
Jason
$250,000 SBA Loan Offer in Compromise
"Great choice for business owners who need a trustworthy partner"
Mary
$350,000 MCA Restructured Over 2 Years

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Beat Ctc Debt Collector

  Crush That CTC Debt Collector: A Merciless Gameplan They’re…

Is Pacific Debt Relief a reputable debt relief company?

  Is Pacific Debt Relief a Reputable Debt Relief Company?…

How is it possible for a bad credit to be fixed?

  Climbing Out of the Bad Credit Hole Sick of…

What is the effect of an AR factor on cash flow?

  The Brutal Truth: How AR Eats Into Your Cash…

What are the best credit card debt relief options?

  Crushing Credit Card Debt? Explore These Relief Pathways If…

Delancey Street simply gets it. You're talking to experts.
Steven Norris
Get Help Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Schedule Consultation