Approach to Business Debt
total amount(s) owed by up to 70%. Result:
typically helps company restore its cash flow, avoid
bankruptcy, and have a stronger balance sheet.
Client’s debt situation to one monthly
payment--which is often higher than Client's
existing minimum monthly payments due to the longer
repayment term of the consolidation loan. Result:
Client often pays 50-100% more than the total
of its original debts.
or Setup Fees?
time small initial deposit which is refunded to
client by PSI as a 20% credit to PSI's earned fees
until sum of such credit is equal to the total of
the initial deposit paid.
first 2 or 3 monthly payments typically are kept in
full (i.e., are NOT applied to debts) by the
Consolidator or Debt Management firm. Other monthly
fees also may apply.
Fee If No Debt Savings" Guarantee?
paid by Client is based solely on the $
amount of debt savings achieved.
fee is not dependent on $ amount of debt savings
achieved. Fixed fees almost always apply.
Fee Based on the $ Amount of Debt Owed? Or on
# of Creditor Accounts?
As PSI’s fees do not depend on either of these
variables, more-heavily indebted Clients are not, in
effect, penalized for it.
many cases, yes, fees are charged based on either
the $ amount of debt owed or the # of creditor
or Escrow Deposits Required?
monthly payments: However, PSI opens an escrow
account for Client at a major, local bank and many
Clients find it helps to keep a balance in the
account equal to 20% of unsettled debts. Escrow
account is in Client’s name, is
interest-bearing, and all funds in it are returned
to Client when the relationship with PSI ends.
PSI never touches Client’s $ without written
must send in monthly, non-refundable payments to
consolidator, who keeps a % of every payment before
Long Process Takes; How Likely Client is to Complete
works at “Client’s pace”: if Client is able to
pay reduced-$-amount debts to multiple creditors,
PSI process may take only 2-3 months. If not,
process can take longer.
debt-consolidation progms have 3-to-5-year terms.
Related fact: about 75% of those starting consumer
debt-consolidation programs don’t complete them.
on Business Credit Rating
business credit rating (e.g., Dun & Bradstreet)
has already dropped due to late or missed payments.
By reviving cash flow, PSI helps to clean up balance
sheet, which lifts company's credit rating and
strengthens its finances.
credit rating (e.g., Dun & Bradstreet) could be
lowered and stay lowered due to the consolidator's
Interest and Late Fees Continue Accruing on Unpaid
Debt During Settlement Process?
but the Client's debt savings are FAR more than any
accumulated interest or fees.
loans usually stop late-payment charges, but they
also have their own interest rates and longer
repayment terms. Client typically repays 50 to
100% more than the total debt owed.