Case study overview

Robin, the owner of a well-established appliance store, found himself in a financial bind when his business took out several Merchant Cash Advances (MCAs) totaling over $140,000. Unfortunately, after just the first month, Robin's store defaulted on these loans, leading to a swift move towards litigation by the creditors.

Recognizing the immediate threat to Robin's business, we took decisive action. Our first step was to manage the litigation process, aiming to protect Robin's interests while seeking a viable solution. We meticulously reviewed the terms of the MCAs and prepared a robust defense to present in court.

Simultaneously, we initiated negotiations with the creditors. Our goal was to reach a settlement that would reduce Robin's debt and provide a manageable repayment structure. Through persistent and strategic discussions, we convinced the creditors to agree to a significant deduction of $50,000 from the total debt.

With the debt reduction secured, we focused on restructuring the remaining balance. We negotiated an extension of the repayment period over 25 months, a crucial move to ensure Robin's business had the necessary cash flow to operate effectively. This extended timeline eased the financial pressure on Robin, allowing him to focus on rebuilding his business without the constant strain of overwhelming debt repayments.

With our intervention, Robin's appliance store was able to avoid the crippling effects of litigation and financial insolvency. The debt reduction and restructured payment plan provided Robin with the breathing room needed to stabilize his operations and steer his business back toward profitability. Today, Robin's appliance store continues to serve its loyal customers, a testament to the power of effective debt negotiation and financial management.