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FAQ's about
Business Debt Settlement,
Performance Source Inc, and more  





What is business debt settlement?
It 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.

For 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 profitability.

Why haven't I heard more about business debt settlement before now?
For 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 debt settlement.

What are the signs that my business might need help with its payables?
If 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.

What types of business debt can PSI help me reduce?
PSI 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.

Do I have to sign a long-term contract to use PSI's services?
No.  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.

Why shouldn't I just negotiate settlements with my creditors on my own?
You 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).

Generally, how long will it take PSI to negotiate my company's debts?
Timing 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.

How does business debt settlement differ from debt consolidation?
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.

I'm getting flooded with calls and letters from my creditors--can PSI help?
Yes.  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.

How much (by what %) can PSI reduce my business debts?
Savings 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.

Are 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.

Do 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 for negotiation/settlement.

Do I have to accept all proposed settlements that PSI brings to me?
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.

What 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.

What about fees?  What can I expect to pay for PSI's services?
Our 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.

Why does PSI open 'escrow' bank accounts for its Clients?
All 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.

How 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.

My company's debt situation is extreme--do you really think PSI can help?
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.

I'm 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.

I 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.