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Best Business Debt Settlement Companies

February 2024

If you are struggling to pay your business debt, you may be able to negotiate with your creditors a reduction in the amount you owe. Although most debt settlement companies focus on consumer debt, some firms also handle debts for small and medium-sized companies.
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American businesses have accumulated nearly $10 trillion in debt. That's roughly half the gross domestic product (GDP) of the United States. If you're a business owner who is struggling with debt, it may feel as though you'll never pay it off. But there's still hope. A business debt settlement company can help you to settle your debt for less than the full amount. However, negotiating a debt settlement is not something you should take lightly. There are risks involved. For instance, this strategy will hurt your credit and the IRS may tax the savings you make from the settlement.
Although it is possible to work out a settlement on your own, many people prefer to hire a professional company to negotiate on their behalf. If you decide to hire a business debt relief firm, take your time to compare firms and find the best fit for your financial situation. Here is SuperMoney's list of the best business debt settlement firms available based on our ranking algorithms and community member recommendations.


SuperMoney's list of the best business debt settlement companies is determined by the qualitative recommendations of our community members and the quantitative recommendations of our ranking algorithms.
If you are looking for a comprehensive guide to debt relief and the main features you should consider when comparing debt settlement companies, read this.

What is a business debt settlement program?

A business debt settlement program is a debt relief strategy that involves negotiating a lower debt balance with your creditors in exchange for a lump-sum payment.

How do business debt settlements work?

Most businesses don't have the cash for a lump-sum payment. So, debt relief companies will recommend they stop making payments to their creditors and start depositing money into a settlement savings account instead. This usually will trigger late fees and other penalties which will increase the amount they owe in the short-term. Some people can't afford the monthly deposits and drop out of the program before their debts are settled, which can leave them in a worse place than when they started. The Federal Trade Commission recommends you "review your budget carefully to make sure you are financially capable of setting aside the required monthly amounts for the full length of the program." Once you have enough saved in the savings account, the debt relief company will negotiate a lump-sum payment with the lenders in exchange for resolving the entire debt amount.

What are the pros and cons of negotiating a business debt settlement?

Here is a list of the benefits and the drawbacks to consider when looking into business debt relief
  • You can settle your business debt for less than you currently owe.
  • Professional debt resolution experts help you negotiate with creditors.
  • No upfront fees until the debt is resolved.
  • Debt collectors may still sue you and try to collect payments until the debt is settled
  • There is no guarantee your creditors will accept a settlement.
  • Business debt relief companies charge significant fees.
  • It will hurt your credit score and you may have to pay taxes on forgiven debts that exceed $600

Commonly Asked Questions About Business Debt Settlement Companies.

Can you settle a business debt?

Yes! Debt settlement companies service a wide range of debts, including personal loans, credit card debt, medical debt, and business debt. However, not every debt settlement company deals with business debts. The list above includes the most recommended business debt settlement companies.

How can my business get rid of debt?

Generally, the process goes as follows. The debt settlement firm opens an account for you, and you deposit payments into that account in regular installments. Once you've paid an agreed-upon amount, the company reaches out to your creditors to convince them to accept a lump sum which is less than the full amount owed. After you pay that amount, you're no longer in debt! The process usually takes between 2-4 years, but can take more or less depending on the size of your debt.
However, a settlement isn't the only way to eliminate debt. You can also try a debt consolidation loan, or you can negotiate with your creditors to set up an installment arrangement.

Does settling business debt hurt your credit?

Yes, unfortunately, settling any kind of debt can hurt your credit score. Even though debt settlement strikes your debt from your account, it still shows up on your credit report as a debt settled for less than the full amount.
Settled debts can remain on your credit report for seven years.

What percentage of my debt should I offer to settle?

That depends on several factors, such as the size of your debt and who your creditors are. Successful business debt settlement companies can reduce your debt load by up to 40-60%. Talk to your business debt settlement company to find out what percentage of your debt they expect to settle. Don't forget to read reviews from past customers to make sure that you can trust their estimate.

How much do business debt settlement firms charge?

It varies depending on which company your hire. But in general, you can expect to pay a fee of 15-25% of your total debt.

What are the best business debt settlement companies for business debt?

You can find our top recommended business debt settlement companies in the list above. For more options, browse SuperMoney's entire list of debt settlement companies here.

About the Author

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SuperMoney is the most comprehensive financial services comparison site around. We have published hundreds of personal finance articles and provide detailed reviews on thousands of financial products and services. Our unbiased advice and free comparison tools help consumers make smart financial decisions based on hard data, not marketing gimmicks.

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