Best Business Debt Settlement Companies

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.

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.

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.

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.

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.

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.

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.

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.

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.