Debt settlement is the process of negotiating with your creditors. Debt settlement companies are third parties that target businesses and individuals owing a debt with the promise of debt reduction or elimination. For a fee, they act as a middleman between you and your lenders and creditors claiming negotiation power beyond that of the average person. While in some cases, debt settlement, also known as debt relief or debt adjustment could be beneficial to the debtor, here is why it can be a risky option.
With appealing promises like lowered payments, better rates, and even eliminating debt responsibility altogether, debt settlement can be tempting. Risks such as damaged credit scores and incurring more debts due to additional fees should not be ignored. These red flags combined with the seedy reputation of the industry might be enough to make debtors steer clear, but in case you’re still on the fence, remember this: No third-party company can change the contract you entered with the original lender unless the lender agrees. Ultimately, if you are in financial distress, contacting the lender directly is the safest approach with the highest opportunity for success.
With Family Business Funding, our advance contract states that once a merchant proves their revenue has decreased or been interrupted, we are obligated to make modifications to the payment plan. We are here to help small businesses be successful, not to hold them back. Don’t fall for debt settlement companies’ pushy promises. Contact Family Business Funding’s Finance Manager directly at William@familybusinessfund.com if you are experiencing hardship.
PLEASE NOTE that once you accept funding from FBF and sign our merchant agreement, you agree to the following specific language regarding debt settlement companies:
“Third-Party Intermediary Fee: In the event the Seller retains a third-party debt relief/re-negotiator entity or individual and contacts the Purchaser seeking to redirect communication regarding this Agreement, a $10,000 fee or Twenty-Five Percent (25%) of the outstanding balance shall be added. This fee shall be used to cover the additional expenses added in modifying the terms of this Agreement. Any portion of this fee that remains unused shall be returned to the Seller at the conclusion of this Agreement or related legal action.”
If you are experiencing any hardship during your agreement duration and you cannot make a payment, please contact our Finance Manager at William@familybusinessfund.com
Family Business Funding will consider giving you additional funds when you have paid 50% of your balance. Contact our sales department at Ryan@familybusinessfund.com for inquiries.
For general inquiries, please contact us at CustomerService@familybusinessfund.com
