Best debt relief companies for business debt

To help regain control of business debt, you might consider exploring your debt relief options. These can help you manage, restructure, or eliminate your business debt entirely. But where to start? We’ve put together a list of the best debt relief companies to get your business on a path of financial stability (Looking to debt relief for credit card debt, we’ve rounded up the best of those companies, too). 

The 5 best debt relief companies for the business debt of October 2024

If you’re one of the many small businesses facing mountains of debt and want to get your business finances under control, a debt relief company can help. Below are our top picks for small business debt. Fees are subject to change, but all figures on our list are current as of October 2024.

National Debt Relief

Headquartered in New York City, National Debt Relief was founded in 2009. Specializing in debt settlement for both consumers and businesses, it has helped more than 550,000 clients relieve over $5 billion in debt. It aims to help customers get out of debt within 12 to 48 months.

Why we like National Debt Relief for best debt relief for small businesses

With more than a decade of debt relief experience, National Debt Relief specializes in debt settlement. It does this by negotiating directly with creditors on behalf of its clients to reduce overall debt. National Debt Relief has a proven track record with personalized solutions for each client it works with. It can do this because it has a relationship with more than 10,000 creditors and negotiates an average of 46% savings on your debt (not including fees). 

As a small business in overwhelming debt, paying upfront can place an unnecessary burden on business finances. This is why National Debt Relief charges no fees upfront. You will only pay once the debt has been settled and you approve the offer. With this performance-based model, your business isn’t stuck with high fees and no settlement.

National Debt Relief fees

When you sign up with National Debt Relief, you won’t pay any upfront fees as it operates on a contingency-based fee model. Small businesses won’t pay any fees until a debt settlement is reached with the creditor, it’s approved by you, and payment is made toward the settlement.

The average fee charged is 25% of the total debt enrolled. For example, if a business enrolls $50,000 of debt, the fee could be up to $12,500. According to National Debt Relief, those who complete the program usually have of around 46% before the fees, or 25% after fees. 

Learn more in our full review of National Debt Relief. 

Pacific Debt Relief

Founded in 2002 and headquartered in San Diego, Pacific Debt Relief has more than two decades of experience in small business debt settlement. It works in 32 states and has settled more than $500 million in debt.

Pacific Debt Relief

Cost	15-25% of enrolled debt based on debt amount and state of registration
Avg. time to settle debt	24-48 months
Accreditations	CDRI, IAPDA

Why we like Pacific Debt Relief for the best customer support

If customer service is important to your small business, Pacific Debt Relief is who you want to go with. Being a small business owner, you don’t often have a huge team to help buffer some of the stress, so Pacific Debt Relief eases some of that burden. It assigns a dedicated account manager to each client, so you get one-on-one attention throughout the entire debt relief process from start to finish. 

It has an A+ rating on Better Business Bureau (BBB) as well as high ratings on consumer review platforms. For example, it has more than 1,800 reviews on Trustpilot, with 4.8 stars on average, and more than 550 reviews on Consumer Affairs with 4.7 stars. With more than 250 Google reviews, it has 4.6 stars in total.

Pacific Debt Relief fees

Like most of its competition, Pacific Debt Relief doesn’t charge any upfront fees. It is only paid if it succeeds in settling your small business’s debt. Fees typically range from 15% to 25% of the total debt enrolled, depending on how complex your case is. 

According to Pacific Debt Relief, clients usually save 50% before fees, and 25% to 35% after fees. For example, if your business enrolls $100,000 in debt, your fee ranges from $15,000 to $25,000.

Learn more in our full review of Pacific Debt Relief.

Freedom Debt Relief

Headquartered in San Mateo, California, Freedom Debt Relief was founded in 2002. It has resolved more than $18 million in debt for over 1 million clients. It has more than 500 certified debt consultants and 200-plus negotiators. Clients typically resolve debt within 24 to 48 months.

Freedom Debt Relief

Cost	15-25% of enrolled debt
Avg. time to settle debt	24-48 months
Accreditations	IAPDA, AADR

Why we like Freedom Debt Relief for transparency

Whether it’s the middle of the night or a weekend, small business clients can check on the status of their debt settlement with Freedom Debt Relief. This is because each client gets an online dashboard that gives real-time access to their account where its can track progress, review settlement offers, and approve or deny them as offers come in. 

Before your small business signs up, you’ll go through a consultation, where the entire process will be explained to you from start to finish, including your responsibilities as a client. Not only that, but it will discuss your particular situation to see if its program is right for your small business.

Freedom Debt Relief fees

When you sign up with Freedom Debt Relief, there is a $9.95 set-up fee as well as a $9.95 monthly fee for account servicing. This is a fee paid directly to Crossroads Financial Technologies (CFT), which is where your settlement funds will accumulate. 

Additionally, the fee charged by Freedom Debt Relief is 15% to 25% of enrolled debt, although this depends on your state and the total amount enrolled and isn’t paid until the debt is settled. The company only processes the fee after you’ve authorized this settlement and a payment is sent to your creditor.

See our full review of Freedom Debt Relief.

Apprisen

Founded in 1955 in Columbus, Ohio, Apprisen is one of the longest-running nonprofit credit counseling agencies in the U.S.. It’s headquartered in Gahanna, Ohio, although it operates nationwide and specializes in helping clients get out of debt without taking out any loans.

Apprisen

Cost:	$45 one-time set up and a $45 monthly fee
Avg. time to settle debt:	3 to 5 years
Accreditations:	NFCC

Why we like Apprisen for debt management

Each of Apprisen’s clients receives a dedicated Financial Specialist who sets up a custom plan tailored to your specific business needs. Throughout the entire program, you can reach out to your specialist, and it will ensure you’re keeping up with your debt payments. Because it understands how important it is to not find yourself in this situation again, Apprisen offers financial education to its clients as well as wealth-building and debt-reduction resources.

Unlike most debt relief companies, Apprisen has reduced and waived fees in the event of financial hardship, making this accessible for even the direst of situations. Plus, its financial review tool, called IRIS, lets small businesses get a custom financial action plan in as little as 30 minutes.

Apprisen fees

Apprisen charges a one-time setup fee of $45 as well as a monthly fee of $45. This fee is variable based on income levels and state regulations, so your business won’t pay more than you can afford. If you have a financial hardship, this fee could be reduced or waived entirely. 

Once enrolled in the debt management program (DMP), you’ll make a monthly payment directly to Apprisen, which is then disbursed to creditors on your behalf. These payments are made via money order, cashier’s check, online, or through AutoPay. This way, you prevent missed or late payments.

Learn more in our full Apprisen review.

CuraDebt

Headquartered in Hollywood, Florida, CuraDebt was founded in 2000. It has helped more than 300,000 clients relieve their debt.

CuraDebt

Cost:	Not disclosed (but guarantee to be the lowest, and no no upfront or monthly fees)
Avg. time to settle debt:	Not disclosed
Accreditations:	AFCC, IAPDA

Why we like CuraDebt for complex debt structures

CuraDebt offers one of the most comprehensive debt relief programs for small businesses. Whether you’ve got a complex debt structure, such as a merchant cash advance (MCA), which often have astronomical interest rates and short repayment terms, or standard business credit card debt, it has an option for you. 

It has a team of negotiators who work directly with creditors to reduce the amount you owe, all while keeping a payment plan that fits your small businesses’ cash flow. To do this, it analyzes the financial situation of your business thoroughly so that it can focus on long-term financial recovery and not just a short-term fix. It also helps with tax debt, so businesses have a single point of contact for taking care of a variety of financial challenges.

CuraDebt fees

Most debt relief companies list a range of 15% to 25% for their fees, but CuraDebt does not list fees at all. Instead, its site says that fees are specific per state.

What to know about business debt relief

During periods of economic downturn, small businesses are particularly susceptible to strained finances. Unlike personal debt, business debt often involves complex debt vehicles, such as loans, credit lines, vendor payments, and tax liabilities. The aim of business debt relief is to avoid bankruptcy by working with creditors to lower the total debt burden or to create more favorable payment terms. The ultimate goal? Return to profitability.

There are a variety of debt relief options for small businesses, although debt settlement is arguably the most popular. This is where a company negotiates to pay less than the full amount owed. It reduces the total amount owed, but it’s also risky. This is because settling debt can reduce a company’s credit score and, if not handled properly, can result in legal action. By working with a company that specializes in debt relief, companies can help mitigate this risk.

Another popular option is debt consolidation. This is when you combine multiple high-interest debts into a single loan, often with a lower interest rate. This way, you’re making a single payment with a single due date, rather than making multiple payments throughout the month to various creditors. The downside is that these usually require collateral, such as business assets, and might not even reduce the amount owed. Each debt relief strategy comes with pros and cons, so it’s important to evaluate them in their entirety before making any decisions.

How to choose a debt relief company for business debt

There are several debt relief companies, and choosing the wrong one can have serious consequences for your business. Here’s a closer look at how to choose one for your small business. First, check for certifications and memberships to professional debt relief organizations, such as the American Fair Credit Council (AFCC) or the International Association of Professional Debt Arbitrators (IAPDA). These usually set specific standards debt relief companies must adhere to. Then, look at customer reviews to get a feel for how real customers feel about the service rather than cherry-picked endorsements on its sales pages.

Does the company offer a full listing of its fees on its site, or must you complete a consultation to get a full rundown of its fees? Do you pay upfront, monthly, or only after the debt is resolved? Are they even equipped to handle the type of business debt you have? Most reputable debt relief companies have relationships with creditors already established, which can go a long way in negotiating your debt. 

Here’s a list of things to consider:

• Certifications and accreditations: Look for membership in professional organizations, such as the AFCC or IAPDA
• Client reviews: Read testimonials and third-party reviews to gauge customer satisfaction
• No upfront fees: Ensure the company only charges fees after delivering results
• Business debt expertise: Confirm that they specialize in or have experience handling business debt
• Transparency: The company should clearly explain fees and provide a detailed strategy for managing your debt
• Customer support: Do they offer dedicated support through account managers or easily accessible service channels

Types of Business Debt Relief Programs

There are various types of business debt relief programs, each suitable for different financial situations. Here’s a closer look at some of the more popular options:

• Debt settlement: The debt relief company works with creditors to reduce the total amount owed. This is ideal for small businesses with substantial amounts of debt.
• Debt consolidation: Combining multiple debts into one loan or payment, usually at a lower interest rate. This is ideal for credit card debt, or multiple debts with various due dates.
• DMPs: Rather than reducing the total amount owed, this focuses on getting more favorable repayment terms, such as lower interest rates and waived fees.
• Chapter 11 bankruptcy: This is a legal process to reorganize debt while remaining operational, often a last resort.
• Tax debt relief: Companies that help businesses negotiate with the IRS or state tax department for penalty abatements, compromise, or installment agreements.
• MCA debt relief: This focuses on restructuring or settling merchant cash advances, which usually take a large percentage of future sales and can severely impact cash flow thanks to high interest rates.

Reasons to consider debt relief for business

There are many reasons why a small business would consider business debt relief. Here are a few scenarios:

• Cash flow issues: If you’re struggling to meet monthly financial obligations, such as payroll, utilities, or rent, debt relief can free up cash and restructure your payments to manageable levels.
• Unable to qualify for loans: If your business has too much debt, it’ll be difficult to qualify for a loan. Debt settlement or consolidation can help reduce this burden, and improve chances for future financing.
• Mounting interest and fees: If your interest and fees are compounding faster than you can pay your debt down, debt management plans or settlement can either help reduce these or eliminate them altogether, saving your business thousands.

Alternatives to solutions for business debt

Beyond traditional debt relief programs, there are other ways you can reduce the amount of business debt you have. Some of these provide immediate relief, while others focus on long-term solutions. Here’s a closer look:

• Increase revenue: Sometimes, the only way to reduce your debt load is to increase your revenue to allow for more cash reserves to go toward paying down debt. You can expand to new markets, or go omnichannel to increase your customer base. Your business can also diversify its revenue streams and offerings.
• Cut operational costs: You can renegotiate vendor contracts for better terms to reduce your overhead expenses. Additionally, automate repetitive tasks or reduce staffing costs.
• Refinance business loans: If your business has decent credit, securing a new loan at a lower interest rate can help free up cash flow by reducing your monthly obligations.
• Government assistance programs: Some states and local governments offer small business grants, while veterans may qualify for the Veterans Advantage Program. Minorities may qualify for Minority Business Development Agency grants or loans.
• Sell assets: By getting rid of surplus equipment, inventory, or property, you can generate cash to pay off debt.
• Private investors or crowdfunding: Angel investors and venture capital can help relieve financial burdens, provided your business has strong growth potential. You can also use a crowdfunding site, such as Kickstarter, Backerkit, or even GoFundMe to raise capital from individual supporters.
• Employee Stock Ownership Plans (ESOP): This is where you offer your employees shares in the company, which reduces the need for cash-based compensation.
• Business restructuring: Through mergers or acquisitions, this is where you can join forces with another company. You can also sell or close divisions that aren’t generating enough revenue to sustain itself.

Our Methodology

To determine the best debt relief companies for small business, our team did a thorough qualitative analysis of dozens of debt relief companies. We analyzed the business and non-business services offered, its published track record, industry reputation, customer reviews, accreditations, and its customer service.

Business debt solutions and services (40%): While there are many credible debt relief companies, they don’t all offer support for small businesses. We focused only on the companies that provide business services, and gave additional weight to the companies that provide multiple business debt services. 

Consumer Reviews (18%): What actual consumers have to say about their experience with a debt relief company is taken into account heavily because dealing with the stress of debt cannot be understated. We looked at a number of consumer review sites, such as BBB, Trustpilot, and Google Reviews, to compile the score.

Costs (18%): Anyone looking for debt relief should be focused on how much it will cost them to reduce their debt because, after all, it has to be worth it. That’s why we heavily weigh costs in our methodology.

Average time to settle debt (14%): Anyone with mounting debt should be concerned with how long it takes to settle and achieve debt-free financial freedom.

Free consultation (5%): All debt relief companies should not charge you for your first consultation. It is against the laws of the FTC for them to take any upfront fees. 

Accreditations and types of debt services (5%): There are several relevant accreditations that debt relief companies can have. Those badges indicate the debt relief company is trained properly to offer you sound advice on how to manage or reduce your debts. We also weighed the types of debt services each company provides, such as debt settlement and debt consolidation.

Frequently asked questions