Another Company Rescued!

It is always gratifying when I am able to assist a business owner with problem debts and lessen their financial burden. Often, this can make the difference between continuing business operations or closing the doors.


A case I closed this week not only allowed a business to remain open, it also allowed the owner to avoid declaring personal bankruptcy.


My HVAC client was dealing with a $213,000 business debt that had escalated to a lawsuit... and the owner was on the hook personally. A judgment would have devastated the company and the owner.


I was able to convince the commercial creditor to accept an out of court settlement in the total amount of $30,000, payable in 60 monthly installments of $500 each at 0% interest.


Considering they could have been awarded attorney fees claimed of $25,000 in addition to the principal debt, court costs and back interest, total savings to my client was over $210,000.


Of course, not all of my negotiations work out this well but I have maintained a near 100% success rate over 20 years assisting my commercial clients with their problem and disputed debts.

20 Years Assisting Business Owners

This month, my firm celebrates our 20th anniversary with much appreciation to our many satisfied clients.  Below is our recent press release with the official announcement:

Scott F. Soape & Associates, LLC celebrates 20 years in business.

 

Georgetown resident and entrepreneur, Scott Soape, has provided commercial debt resolution services to small and medium size businesses nationwide for 20 years.   Soape assists business owners with their past due or disputed debts, judgments, liens or lawsuits by negotiating manageable payment plans on their behalf with their commercial creditors.  Since founding his unique consulting practice in 1997, Scott has assisted hundreds of businesses resolve their problem payable accounts, helping many to keep their doors open for continued business and avoiding the need to lay off employees.

 

According to Soape, most of his business clients are simply experiencing temporary cash flow difficulties, usually because they are waiting for payments themselves, and just need a little relief from their creditors until business picks up or payments are received.  As a highly skilled negotiator and work-out specialist, Scott helps restructure commercial debts so his clients may more easily manage these payments and concentrate on running their business operations.

 

A Houston native, Scott Soape has lived and worked in the Austin area since graduating from the School of Business at the University of Texas.  With an extensive background in local banking and financial consulting, Soape draws upon over 35 years of business experience in assisting his clients with their commercial debt resolution needs.

 

            More information on Scott and his service may be found by visiting his company website at www.SFSoapeAssoc.com.

Credit Score Changes Are Coming Soon

Some big changes are scheduled to how credit scores are calculated.  It is always a good idea to know how you rank and I encourage everyone to check their scores at least annually through the free online site www.annualcreditreport.com.


However, you now need to be aware of the new ways your score will be calculated and possibly change how you manage your debts.


Please click on the below link and a brief article explaining these new calculations:


http://www.newsmax.com/Finance/Economy/Changes-Credit-Score-Calculated/2017/04/20/id/785375/


Scott F. Soape

Providing Financials to Creditors

During the course of some settlement negotiations, a creditor may request copies of a recent Balance Sheet and Profit / Loss Statement in order to justify allowing a discount on a claim.  Copies of recent tax returns may also be requested.


Providing this requested information is entirely optional.  However, if the information is readily available and supports a financial need for a discount, I usually recommend my client provide the requested documents.  I can review the information prior to sending to the creditor to ensure there is no data included that might adversely affect settlement negotiations.  If desired, I can also request a non-disclosure agreement from the creditor.


If, for any reason, this information is not readily available or if the data does not support a need for a discount on the claim, I can usually steer settlement negotiations away from this topic and move forward for satisfactory settlement terms.


Scott F. Soape

Boost Your Credit Score

Many times when a business owner is experiencing cash flow difficulties with their business, it flows over to their personal financial situation.  Although I limit my practice to only commercial clients, I always strive to assist business owners with their complete financial recovery.


A recent online article from Kiplinger provides 7 ways to boost your credit score.  Please click the below link to view the full article.


http://www.kiplinger.com/article/credit/T017-C000-S015-debt-payoffs-that-boost-your-credit-score-the-most.html#


Scott F. Soape

Communication is Key

Many of the past due debt situations I encounter could have been avoided with better communication between the parties.

Most commercial creditors are willing to be flexible with repayment if they are kept informed of a debtor company's financial situation when times are difficult.  These problems usually are the result of not being paid in a timely manner on their own accounts receivable, causing a domino effect.

When communication stops, commercial creditors have little choice but to escalate collection actions by sending demand letters, retaining outside collection agencies or attorneys and, eventually, filing lawsuits to collect.  By keeping the lines of communication open and explaining the reasons for late payments, a business owner can often avoid or delay these stepped up collection actions and retain desired relationships while they work to get their finances in order.

Scott F. Soape

How Much of a Discount Can You Expect?

One of the most frequent questions I get is: "How much can you discount this debt?"  My answer is often: "It depends".

There are many factors that impact a settlement and every situation is unique, even when they entail a creditor company I have dealt with previously.  I never know what to expect until I consult with my client about the nature of the claim and I start settlement negotiations with the creditor or their agent.

Some creditors are more willing than others to compromise a debt and some are entirely unwilling to compromise at all.

Many times, creditors are more willing to agree to substantial discounts if a lump-sum payment is offered rather than an installment plan.  Also, if my client can prove a financial need by providing current financial documentation reflecting a lack of resources, some creditors will be more flexible.

I have encountered claims where I was able to negotiate a settlement for ten cents on the dollar as well as claims where the creditor insisted on reimbursement for all collection costs in addition to full payment of the principal amount.

However, my professional, aggressive approach to negotiations has resulted in a near 100% success rate with most settlements resulting in discounts between 20% to 80%.

In any event, the final settlement is always subject to my client's approval and acceptance before I earn my fee.

Scott F. Soape