Equipment Loans

Equipment loans finance the equipment needed for business operations. The purchased equipment serves as collateral, with rates and terms dependent on the business's financial health.

These loans may require a down payment, and the equipment might depreciate faster than the loan's term, potentially leading to financial strain if the equipment becomes obsolete.

When an equipment loan is in default, lenders frequently threaten repossession or seizure of the financed assets under their UCC lien and security agreement. In practice, the resale value of used or highly specialized equipment may be far lower than the outstanding balance, which can create an opportunity to negotiate an equipment financing settlement that reflects the true liquidation value. We help clients understand whether surrendering certain assets, restructuring payments, or offering a lump sum can resolve the account while minimizing disruption to daily operations.

Invoice Factoring and Financing

Invoice factoring involves selling unpaid customer invoices to a factoring company for immediate cash. The factoring company collects payment directly from the customers. Invoice financing, on the other hand, uses invoices as collateral without selling them and provides a loan based on their value.

Invoice factoring can be costly and relinquishes control over the invoicing process. Both options can lead to a cycle of dependency on borrowed funds, potentially exacerbating financial issues.

Disputes with factors and invoice finance companies commonly arise when customers pay more slowly than expected or challenge the underlying invoices. Many of these contracts allow the funder to debit the business’s bank account daily and declare a default if reserves fall below set thresholds. In settlement discussions, we review whether the funder has complied with New York and federal collection rules, how much of the receivable pool remains collectible, and whether restructuring the agreement or negotiating a discounted payoff will better align with the business’s real cash flow.

Personal Loans for Business Purposes

Personal loans for business purposes are often used by startups or businesses without an extensive operating history. These loans rely on the owner's credit history rather than the business's credit.

While personal loans can offer favorable rates and terms, they come with high borrowing costs and the risk of damaging personal credit if the business cannot repay the loan.

Because these accounts are under the owner’s name, missed payments can quickly affect credit scores, access to housing, and even professional licensing in some industries. When we evaluate options, we discuss how a negotiated resolution with the personal lender will interact with any remaining business obligations and whether paying a lump sum, entering a structured settlement, or combining this relief with broader business loan settlement in New York offers the most protection for both the company and the individual.

Business Credit Cards

Business credit cards provide a revolving line of credit, allowing businesses to draw from and repay funds as needed. They require minimum monthly payments and are typically unsecured.

These cards often have high costs, variable interest rates, and additional fees, which can quickly accumulate if they are not managed carefully.

Delinquent business card accounts are frequently placed with third-party collection agencies or law firms that file lawsuits in New York state courts. Even though the debt may be unsecured, a judgment can lead to levies against business bank accounts and other assets. We help clients evaluate when it makes sense to combine several card balances into a consolidated settlement strategy and how to time offers so that the business stabilizes its cash flow before committing to new payment obligations.

Microloans

Microloans are small business loans typically offered by alternative lenders rather than banks. They are often used as startup capital for small businesses.

Microloans usually have high interest rates, making them expensive despite their smaller principal amounts.

Although the balances on microloans are smaller, the impact on a new or early-stage company can be significant, especially when several short-term products are stacked together. Many alternative lenders serving New York businesses use aggressive daily or weekly debits that can drain operating accounts and limit payroll or vendor payments. In these situations, we work with owners to prioritize which lenders to approach first, how to present a realistic hardship picture, and how to structure settlements so that the business has space to recover instead of returning to another high-cost loan.