Cash Advance Debt
Merchant cash advance loans offer quick approval and flexibility, taking a percentage of your profits rather than using a fixed pay date. Because they do not require a long credit history or significant assets, they can be especially helpful to small businesses that are expecting rapid growth. However, when the growth you were expecting doesn’t come or other unexpected costs occur, you can easily find yourself in a losing battle with the high-interest rates that come with this type of loan. Struggling to keep on top of their business debt, many businesses fall into the trap of taking out additional loans to pay off their merchant cash advance. Then they find themselves unable to pay back their business loans, they repeat the process over and over again until they have stacked up several high-interest loans. This is a struggle for many small businesses.
What many businesses do not know there is an alternative solution. A business debt restructuring company like National Credit Partners can be an advocate for your business and help you get out of business debt through the strategic use of UCC -1 filings. Creditors use UCC-1 filings to claim first rights on your business assets if you are unable to pay your loan. Multiple creditors may have filed UCC-1s, but they can’t all have first priority. In this scenario, the first creditor to file is given priority. The other creditors must wait until you have completely repaid your loan to the creditors above them before they can collect. If your assets are worth less than what you owe to your first position creditor, the other creditors hold no equity in your assets.
This is where National Credit Partners comes in. With our strong negotiating power and unique strategies, we can make more favorable arrangements with creditors and help restructure your business debts. By building good relationships with creditors, we help both sides come to a compromise that allows them to move forward. In this way, we can reduce your debt and help secure your company’s assets. If your business is struggling with debt, we can help you with a custom strategy that works for your business.