BAC | Business Advisory Center Inc.
Debt Relief For Small Businesses Since 1997​​

FAQ’s | Business Advisory Center Inc.

1. What kinds of debts does BAC settle? 
We settle debts that your company owes other businesses or individuals. We do not settle back taxes.

2. When do I need your services?
You have a critical past due payables or payables. You are receiving calls/letters from collectors and/or lawsuits from attorneys. It’s smart to engage us when you see the process starting.

3. What is the typical settlement?
Most cases settle for between 25% to 65% of the amount due with payment terms on the reduced balance – usually 3 to 12 months.

4. Why do creditors accept settlements?
They are frustrated by their failure to collect and know that pursuing legal action is costly, time-consuming and may yield nothing in the end.

5. How do you achieve these settlements?
BAC has an approach to presenting your business situation to creditors that makes them interested in an amicable settlement.

6. Are you attorneys?
No. We achieve out-of-court settlements on an amicable basis, so you avoid the cost, time and agony of the legal process.

7. Are you always successful?
No, but we succeed a very high percentage of the time.

8. Who determines the settlement offers?
We suggest offers based on our experience, but you approve any offer before we make it. You are never confronted with a settlement that you have not approved in advance.

9. Who are the typical creditors?
Suppliers, equipment leasing companies, landlords, professional services (consultants, attorneys, accountants), media, banks, shipping, travel, utilities, other.

10. Do you consolidate our debts and work on settling all of them at once?
No. Most companies having financial problems are not in a position to settle all debts at once. We help you prioritize so the most urgent debts are settled first. The objective is to settle what’s necessary to help you through the tough period.

11. When do I start paying creditors?
You start paying once the case has been settled and confirmed in writing. Your creditor is accepting a large reduction in exchange for payments that begin upon settlement.

12. How long does a settlement take?
The time varies depending on the creditor. Some settlements happen within 2-3 days. Other can take weeks. Often larger companies take longer because of their structure and procedures.

13. What is BAC’s fee?
Usually our fee is a percentage of the saving we achieve. We do the work and you save most of the money!

14. When does BAC get paid?
We are paid case-by-case upon settlement.

15. Do I need to put money in escrow?
No. You pay creditors and BAC when results are achieved.

16. Do I continue to have contact with the creditor?
No. Once BAC begins the settlement process we handle all contact. You refer any creditor calls to us.

17. What are the main benefits of your service?
We enable you to pay creditors that you have been unable to repay. We remove the headaches and time involved in dealing with creditors.

18. Why shouldn’t we just file for bankruptcy protection and get a fresh start?
Bankruptcy is referred to as a last resort for good reason. The process is lengthy, costly and you operate under a cloud. Most small companies that enter bankruptcy never emerge from it.

19. How does settling debts impact our credit rating?
Settlement improves it. With past due debts your credit rating is already poor. Settling removes the negative entry.

20. Will my suppliers continue to do business with me after they settle?
Since the settlements are amicable, often the relationship can resume, often on a c.o.d. basis. Sometimes our clients have already started doing business with an alternate supplier.

21. How do I get money for settlement payments?
Cut-backs and outside funding. Also, by prioritizing the debts we can focus on urgent debts to conserve funds.

22. Can you settle debts already in litigation?
Yes. BAC has settled many lawsuits and judgments out-of-court. We have settled cases in which the City Marshal was preparing to auction assets. It’s never too late!

23. When sued, should we hire an attorney or BAC?
Hire an attorney when you are determined to win the case and prepared to pay the legal costs to do so. Hire BAC when you Want to settle the case at a substantial discount and avoid the costs, aggravation and uncertainties of litigation.