While the need for a discount on a claim may be obvious to a debtor business owner, the commercial creditor may need some convincing.
Properly worded offers can often make the difference.
Simply telling a creditor you are unable to pay a debt and lobbing an offer for less their way is rarely good enough. Likewise, threatening them with bankruptcy is a poor strategy for a discounted settlement.
Most creditors need to be convinced they should compromise on their claims. Providing some background on the events that led to the past due account and inability to pay will give the creditor some understanding of a debtor company's financial situation and help bring them to the negotiation table.
If a creditor understands they risk non-payment without some form of compromise or flexible repayment terms, they are more likely to see they are actually part of the solution to receiving at least a partial payment.
