is business debt settlement?
is the process of reducing your business payables by having
an authoritative third party (PSI) negotiate with your
creditors. It is for companies that want to pay their debts
but are having difficulty.
closely held companies dealing with heavy debt loads,
business debt settlement is an alternative to bankruptcy,
debt-consolidation loans, borrowing, and dwindling cash
flow. Business debt settlement is all about
negotiation: PSI represents you, the debtor, to your
creditors and actually reduces the amount you owe them.
Meanwhile, you focus on rebuilding your company's sales and
haven't I heard more about business debt settlement before
several years, the media has focused on consumer (not
business) debt, and ads for consumer debt consolidation
programs have proliferated. As a result, many people do not
realize that discounted business-debt settlement
services exist. It's difficult to know just how much
"consumer" credit card debt is actually
business-related, but it's believed to be a significant
percentage. Also, because debt settlement usually
indicates that a firm has had financial difficulty, both the
company and its creditors tend not to publicize their use of
are the signs that my business might need help with its
your company has debts that you want to pay but cannot . . .
or if you are being harrassed by creditors seeking payment .
. . or if your business cash flow has dwindled to the point
where you are considering bankruptcy, it's likely that your
firm needs experienced, professional help from a
debt-settlement leader such as Performance Source Inc.
If for any other reason your business payables suddenly feel
like a major burden, don't ignore it--instead, contact us
for a free, no-obligation consultation.
types of business debt can PSI help me reduce?
will approach and handle any debt submitted by a client with
whom we have a signed agreement. The Client is free to
accept or reject any settlement offer that PSI negotiates.
I have to sign a long-term contract to use PSI's services?
PSI's agreement permits the Client to resign (terminate
PSI's services) on 30 days written notice. However, in
PSI's entire history (1963 to the present), less than 1% of
our Clients have resigned before allowing us to settle at
least a some of their debts.
shouldn't I just negotiate settlements with my creditors on
might be able to achieve results similar to ours on your
own. However, based on our 40+ years of experience, we
have found that arms-length, professional intervention works
best: debt settlements are more willingly attained when
worked by a skilled, third-party negotiator. Besides,
you have a business to run, so you probably don't have time
to work out a series of debt settlements, even if you have
done so before (and most business owners have not).
how long will it take PSI to negotiate my company's debts?
and control of the debt settlement process rests solely with
you, the Client. Many creditors will accept settlement in
2-4 weeks, others may take months. Most important, we will
work at a pace controlled by you.
does business debt settlement differ from debt
A debt consolidator basically uses your funds to seek
long-term payouts, not debt settlements. In many cases you
must pay fees to the consolidator monthly, and often the
consolidator also earns fees from your creditors. As a
result, you may end up paying 150% or more of your original
debt. In contrast, PSI's debt settlement differs in that
significant discounts are obtained from your creditors, your
debt is satisfied and your slate is wiped clean.
getting flooded with calls and letters from my
creditors--can PSI help?
Once you become a Client of PSI, we will stop calls and
demands to you from the creditors whose debts you have asked
us to settle.
much (by what %) can PSI reduce my business debts?
range from 20% to as much as 70%. There is no way to
estimate what specific savings can be achieved until we
begin working on your debts. Many factors affect debt
settlements, including promises which might have been made
to your creditors before we contact them. This is just
one more reason to get PSI involved as early as possible if
your company is having debt problems. With our 40+
years of experience, we have a wealth of creditor-handling
techniques. These techniques have consistently helped
us win better settlements and protect business owners from
creditors who might try to take advantage of their
inexperience in negotiating debts.
my creditors really willing to accept less than the full
amount I owe them?
Our experience is that the vast majority of creditors will
accept settlement. Our job is to achieve the best
settlements. In most cases we see that creditors who
have settled debts with our Clients will once again sell
their product or service to our client.
I have to allow PSI to negotiate with all of my creditors?
No. You alone decide which of your creditors, and
which of your debts with those creditors, to submit to us
I have to accept all proposed settlements that PSI brings to
No. Unlike many of our competitors, you may reject any
proposed settlement we reach with your creditors. We
realize that each proposed settlement needs to match your
payment capacity--otherwise you would not accept it.
happens to my company's credit rating if we settle some or
all of our business debts?
A very good question. First, consider your
current credit rating: If you are behind on your business
debts, your credit is already hurt. Settlement will
help improve your credit and clean up your balance sheet.
Next, realize that as your debts are settled, your
credit report will reflect those settlements, improving your
rating. Then, as you re-establish credit
relations with others, paying within agreed terms, your
rating will improve further. Note: Although many
believe that their credit reports are checked on a daily
basis, the fact is that they are read only when seeking a
major loan or purchase.
about fees? What can I expect to pay for PSI's
fees are performance-based at 30% of the savings we
achieve for you. A fee is due to PSI at the time you
pay each settlement that you accept. You pay nothing
until and unless you accept a settlement.
does PSI open 'escrow' bank accounts for its Clients?
settlements that we achieve will require the Client to pay
some money--there is no such thing as a "no-money
settlement." By funding an escrow account, the
Client ensures that money will be available to pay the
settlements that he/she approves. PSI opens the
account at its own expense in the Client's name at a major
Chicago-area bank. Because we can assure your
creditors that their settlement will be paid via a major
bank's check, they are more willing to settle.
Important: No money can be
moved from the escrow account without the Client's written
approval. At the end of PSI's service to the client,
PSI promptly returns to the client all interest earned on
the account and the funds remaining in the account.
much money must I deposit into this 'escrow' bank account?
We suggest monthly deposits of 4% (or more) of your total
unsettled debt to creditors, until the escrow-account
balance equals 20% of unsettled debt. In essence, the more
funds that the client makes available, the faster approved
settlements can be reached.
company's debt situation is extreme--do you really think PSI
Since 1963, we have saved millions of dollars for thousands
of Clients, including some who thought their debt was beyond
help. We enjoy the challenge of 'big' debt situations, of
course, but are equally and absolutely conscientious in
handling all matters for all Clients.
looking to close my business but it has debts--can PSI help?
Yes, even when a business is closing, PSI can help solve
debts that the owner wants to pay but cannot. Our service
can help the owner preserve funds for a specific future
need, or when his/her future income itself may be unknown.
know of a company that might have debt problems--should I
give PSI their name? And, is there an incentive
for referring new prospects to PSI?
In one word, YES! Our S.U.R.E. (Satisfied User Refund
Entitlement) program, in which a current or former PSI
Client refers a new Client, can result in a full refund of
the fees which the referring Client previously paid to PSI.
We also invite non-clients to inquire about another way to
earn money by generating leads.