As an entrepreneur, you’re likely to have some business debt on your hands. Business debt, also known as commercial or corporate debt, can take the form of loans, leases or contracts. Although you might think that this type of debt is inevitable and loans are essential to growing your business, sometimes a loan isn’t enough - In fact, the added debt burden may end up making it harder to stay profitable.
Business loans present some special complications. First, if you’re a sole proprietor or personally guaranteed a business loan, then it isn’t just the company that’s on the hook—your personal assets may be at stake as well. Second, debt collectors and debt buyers attempting to collect on business loans aren’t covered by the Fair Debt Collection Practices Act (FDCPA) and other powerful consumer protection statutes.
But that doesn’t mean you can’t fight back. DebtCleanse offers a special membership tier for business owners that helps you get in control of your debt.
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Not All Business Loans are Created Equal
In light of the COVID-19 pandemic which shut down some of the biggest industries such as retail, dining and travel, the U.S. government pledged to give small businesses billions of dollars in rescue loans at low interest rates through the CARES Act. However, these small business loans often don’t solve the problem with several offering small loan amounts to only the most qualified borrowers.
When it comes to debt collection processes and your options for fighting back, it’s important to understand the differences in loan types and how they impact your options. For example, a business loan may be secured or unsecured. It may be solely the responsibility of an LLC, corporation, or other legal entity, or you may be personally liable. The entity in debt—whether that’s you, a company, or both—may or may not have assets subject to collection action. And, the loan may or may not be government-backed.
Your DebtCleanse attorney will help you understand your risks, rights, and options based on the type of loan you have and the assets you have to protect.
Managing Business Loans
The fact that you took out a loan for business purposes doesn’t give it—or debt collectors—magical powers. In many respects, a business loan is no different from any other loan. Creditors and debt collectors still have to follow a legal process to collect on the debt. Many make mistakes, get sloppy, or make misrepresentations in the process that can be used as leverage to negotiate a favorable settlement or put an end to the collection process altogether.
If you’re not personally obligated on the debt and the company is insolvent, the debt collector may have no recourse at all. Unlike a personal debt, which can linger while a creditor or debt buyer waits for you to have garnishable income or money in the bank, a business debt without a personal guarantee dies with the business.
When you become a DebtCleanse member, you’ll get all of the information and resources you need to fight back—including an attorney experienced in debt collection defense.
DebtCleanse Can Help
When you sign up with DebtCleanse, we’ll connect you with an experienced and knowledgeable attorney who will help you identify a plan to tackle your business debt. Take the first step today at no risk to you - At DebtCleanse we’re confident that our approach will help you overcome your debt which is why we offer a 30-day money-back guarantee.
So what are you waiting for? Call us at (800) 500-0908 or get started online now.