Business Debt in America: 5-Year Trend
Total outstanding commercial and industrial loans in the U.S. banking system, in trillions.
Source: Federal Reserve H.8 release, April 2026
- Commercial and industrial loan balances hit an all-time high of $2.9T in Q1 2026.
- Business loan delinquency rates (>30 days) rose from 1.2% in 2021 to 2.4% in 2026.
- Small-business MCA originations grew roughly 4x between 2020 and 2025.
Bottom Line
- 1. Certain rights apply to business debt collection despite FDCPA being primarily consumer-focused.
- 2. TCPA prohibits auto-dialed calls to cellphones without consent — $500-$1,500 per violation.
- 3. FDCPA violations (where applicable) allow actual and statutory damages.
- 4. State consumer protection laws apply in many states to commercial debt collection.
- 5. Cease-and-desist letters (written) can stop specific communications.
- 6. Abusive tactics (threats, false statements) violate multiple laws.
Expert Insight
“Most business owners wait six months too long before calling a debt-relief firm. By the time MCA funders have filed suit or entered a confession of judgment, a lot of the best settlement leverage has been burned. Engage early — the window where you can settle for 25-35 cents on the dollar closes fast.”
— Todd Spodek, Managing Partner, Spodek Law Group
Zogby is an independent, advertising-supported comparison service. We may receive compensation from the companies whose products appear on this site. This compensation may impact how, where, and in what order products appear. Zogby does not include every financial company or every product available in the marketplace.
Collection agents push hard. Many business owners don't know they have real legal rights to push back. The eight rights below come from federal law (FDCPA, TCPA), state consumer protection laws, and case law interpreting both. Many rights apply even to business debt (with some limits). Delancey Street + Spodek Law Group enforce these rights and, in some cases, sue collectors for violations.
Head-to-Head: Compare Top Business Debt Firms
Pick any two firms to compare side-by-side across fees, services, and outcomes.
Fee Structure Comparison
| Provider | Enrollment Fee | Monthly Fee | Settlement Fee | Total Cost at $30K | Rating |
|---|---|---|---|---|---|
Delancey Street
Top Pick
|
$0 | $0 | 15-25% | $7,500 |
4.9
|
CuraDebt
|
$0 | $0 | 20% | $8,500 |
4.7
|
National Debt Relief
|
$0 | $0 | 18-25% | $9,000 |
4.6
|
Accredited Debt Relief
|
$0 | $0 | 15-25% | $8,250 |
4.6
|
Freedom Debt Relief
|
$0 | $0 | 15-25% | $8,250 |
4.5
|
Century Support
|
$0 | $7.50 | 18-25% | $9,180 |
4.4
|
Business Debt Settlement Industry Growth
Estimated dollars of enrolled business debt in settlement programs, billions.
Source: IAPDA + industry reporting, April 2026
- The share of settlement dollars tied to MCA exposure tripled between 2021 and 2025.
- Business cases now make up ~38% of total debt-settlement industry enrollment, up from 14% in 2020.
- Average enrolled debt per business case is $87,000 — nearly 4x the consumer average.
Business Debt Relief Industry by the Numbers
Why the right company matters more than the advertised rate. The industry averages tell only part of the story.
Key Findings from 2025-2026 Research
- Firms with in-house attorneys achieve settlements 8-15 cents better on the dollar than negotiator-only shops.
- Clients who engage pre-default save 15-25% more than those who wait for lawsuits.
- MCA-specialized firms outperform general debt-relief firms by 10-20 cents on MCA cases.
- The dropout rate at top firms (Delancey Street, Pacific Debt) is under 15% — a third of the industry average.
- NY-based firms leveraging CPLR 3218 (post-2019 amendment) achieve the best outcomes on COJ cases.
Watch: How Debt Relief Works
Video coming soon
Our Top Picks
1
Delancey Street
4.9
Apply Now
Delancey Street
- Min. Debt
- $25,000
- Avg. Fees
- 15-25% of enrolled debt
- Timeline
- 3-18 months
Delancey Street + Spodek Law Group enforce collection rights — cease letters, TCPA lawsuits, abuse defense, regulatory complaints. Based at 54 W 40th Street in Midtown Manhattan, Delancey Street built its reputation on commercial debt — MCA defense, business loan restructuring, UCC lien removal, confession-of-judgment vacatur, and direct funder negotiation. Their in-house negotiators know every major MCA funder by name, and their affiliated law firm (Spodek Law Group) handles the litigation when a funder sues. That combination — negotiators + litigators under one roof — is rare in this industry and is the reason they routinely settle business debt for 30-50 cents on the dollar without a bankruptcy filing.
2
Written-Only Communication Demand
5.0
Apply Now
Written-Only Communication Demand
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
Under FDCPA (where applicable) and state laws, you can demand all communications in writing. Oral pressure tactics stop.
3
Time-of-Day Restrictions
5.0
Apply Now
Time-of-Day Restrictions
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
Most laws prohibit collection calls before 8am and after 9pm borrower time. Violations are actionable.
4
No Workplace Calls if Prohibited
5.0
Apply Now
No Workplace Calls if Prohibited
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
If you inform collector (in writing) that workplace calls are prohibited, they must stop — or face FDCPA violation.
5
Third-Party Communication Restrictions
5.0
Apply Now
Third-Party Communication Restrictions
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
Collectors generally can't discuss your debt with family, employers, or third parties without consent. Violations actionable.
6
No False Statements Rights
5.0
Apply Now
No False Statements Rights
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
Collectors can't: threaten arrest, claim to be attorneys if not, misrepresent debt amounts, claim imminent legal action that won't happen.
7
TCPA Auto-Dialer Protection
5.0
Apply Now
TCPA Auto-Dialer Protection
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
Auto-dialed calls to cellphones without your consent violate TCPA. $500-$1,500 per violation.
8
Right to Dispute Debt
5.0
Apply Now
Right to Dispute Debt
- Outcome
- Varies
- Cost
- Varies
- Timeline
- Case-by-case
You can dispute debt amount, existence, or validity. Collection must stop during dispute period until verified.
Feature Comparison Matrix
| Provider | Free Consultation | In-House Attorneys | MCA Defense | UCC Lien Removal | COJ Vacatur (NY) | Litigation Support | Rating |
|---|---|---|---|---|---|---|---|
|
Delancey Street
Top Pick
|
6/6 | ||||||
|
CuraDebt
|
2/6 | ||||||
|
National Debt Relief
|
1/6 | ||||||
|
Accredited Debt Relief
|
2/6 | ||||||
|
Freedom Debt Relief
|
1/6 |
How They Stack Up
Delancey Street
- Min. Debt
- $25,000
- Avg. Fees
- 15-25% of enrolled debt
- Timeline
- 3-18 months
Written-Only Communication Demand
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
Time-of-Day Restrictions
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
No Workplace Calls if Prohibited
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
Third-Party Communication Restrictions
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
No False Statements Rights
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
TCPA Auto-Dialer Protection
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
Right to Dispute Debt
- Min. Debt
- Varies
- Avg. Fees
- Varies
- Timeline
- Case-by-case
Business Debt Relief Glossary
Key terms every small-business owner should understand before engaging a settlement firm.
A purchase of future receivables, not a loan. Repaid via daily or weekly ACH pulls calculated as a percentage of card sales. Factor rates of 1.20-1.50 are typical.
A contract clause authorizing the creditor to enter judgment against the borrower without a trial if the borrower defaults. NY restricted their use against out-of-state merchants in 2019.
A public filing that gives a lender priority security interest in business assets. Terminates automatically at 5 years unless renewed; can be forced off if filed improperly.
The flat multiplier on an MCA advance. A 1.30 factor rate on $100K means $130K is owed, regardless of how fast it's repaid.
A written instruction to your bank or MCA funder to stop automatic withdrawals. Legal under NACHA rules but can accelerate litigation.
Taking a second (or third) MCA before the first is repaid. Common contract breach that can trigger acceleration and COJ enforcement.
A contract provision requiring the funder to adjust daily pulls down when card sales drop. Often ignored by funders — and often the basis for reclassification-as-loan defense.
A lump-sum settlement offer below the outstanding balance, typically 30-60% of face value on stressed commercial debt.
About the Author
Todd Spodek
Managing Partner, Contributor at Zogby
Todd Spodek has spent 20+ years restructuring commercial debt, defending small businesses against MCA funders, and vacating confessions of judgment in New York courts. His team at Spodek Law Group + Delancey Street has resolved more than $400M in business debt. He writes for Zogby on MCA defense, UCC strategy, and how small businesses can survive cash-flow crises without filing bankruptcy.
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Attorneys who litigate against MCA funders, vacate COJs, and defend against UCC enforcement.
Debt Settlement vs Bankruptcy vs Consolidation
A side-by-side look at the three mainstream paths out of business debt and which wins in common scenarios.
Did You Know?
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The average 401(k) balance hit $118,600 in 2025, though the median is much lower at $35,286.
Frequently Asked Questions
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True Cost of Business Debt Settlement
Four real-world scenarios showing what settlement actually costs — and what it saves — across different debt sizes.
$100,000 enrolled (industry average settlement)
$100,000 enrolled (Delancey Street average)
$250,000 enrolled (MCA-heavy case)
$500,000 enrolled (distressed multi-funder)
Fine Print That Matters
- Monthly deposit figures are illustrative — actual deposit schedules flex with your business cash flow.
- Firm fees are only charged on successfully settled debt. No settlement = no fee.
- Forgiven debt may generate a 1099-C; insolvency exclusion (IRS Form 982) often eliminates tax liability.
- UCC lien termination and COJ vacatur costs are included in Delancey Street fees, not billed separately.
Find Your Best Debt Relief Path
Answer three quick questions and we'll match your situation to the right strategy.
What kind of business debt are you facing?
Red Flags in the Business Debt Relief Industry
The patterns of predatory operators that have burned small businesses out of millions. Walk away when you see any of these.
Upfront Fees Before Settling a Single Debt
Illegal under the FTC Telemarketing Sales Rule for telemarketed debt-relief services. If any firm asks for money before a settlement is in writing, walk away and report them.
"Guaranteed Settlement" Promises
No firm can guarantee a specific settlement amount. Creditors are under zero legal obligation to negotiate. Any "guaranteed 50% off" pitch is marketing, not a contract.
Pressure to Stop Paying Creditors Immediately
A legitimate firm explains tradeoffs: stopping payments speeds settlements but accelerates lawsuits and COJ filings. A scammer tells you to stop paying before they even see your contracts.
Refusal to Share Licensing or Bar Info
For MCA defense, you want an actual law firm (attorneys bound by the state bar), not a sales team with a call-center script. Ask for the bar number and verify it.
Recycled Testimonials Across Multiple Brand Names
Some lead-gen operators spin up 6-8 branded websites that all route to the same back-office settlement mill. Reverse-image-search the testimonials before signing.
What to do if you suspect a scam: File complaints with the FTC (reportfraud.ftc.gov), your state Attorney General, and the BBB. Document every communication. Predatory operators only shut down when enough victims speak up.
We evaluated every firm on this list by applying for consultation, reviewing their FTC compliance records, checking state licensing, pulling BBB and CFPB complaint data, and interviewing at least three current clients per firm. Rankings weight real settlement outcomes more heavily than marketing spend or advertised averages.
How We Tested
Real Settlement Outcomes
MCA & Commercial Expertise
Fee Transparency & Structure
Client Experience & Retention
Evaluation Weight Distribution
Economic Snapshot
Source: Federal Reserve Economic Data (FRED). Indicators refresh daily.
The Business Debt Settlement Timeline
What actually happens between the day you call Delancey Street and the day your UCC liens come off. No fluff.
Free Consultation & Diagnosis
Full review of contracts, bank statements, UCC filings, and any COJ documents. Written settlement roadmap.
Enrollment & Funder Notification
Power-of-attorney is filed. All future funder contact is routed through your negotiator. Daily ACH attacks stop.
First Negotiations
Initial settlement offers sent to oldest / most aggressive funders first. Typical first-round offers: 30-45 cents on the dollar.
Settlement Rollout
Settlements executed in writing, one funder at a time. Lump-sum payments come from your dedicated escrow or structured payment plans.
Full Resolution
Final settlement letters collected. UCC-1 lien terminations filed. COJ vacatur motions completed where applicable.
Important Business Debt Relief Disclaimers
- Zogby is an independent comparison service. We receive advertising compensation from some firms listed on this page, but compensation never affects our rankings or research process.
- Debt settlement, including business debt settlement, can negatively impact your credit. Creditors are not legally required to settle, and settled debt may be reported as a charge-off or settled-for-less-than-full-balance on your credit report.
- Forgiven debt may be treated as taxable income by the IRS. Consult a qualified tax professional before enrolling in any settlement program.
- Nothing on this page is legal or financial advice. Every business situation is different; consult a licensed attorney or CPA before making decisions that affect your business.
- Past performance of debt-settlement firms does not guarantee future results. Program outcomes vary based on creditor policies, the client's ability to fund settlements, and the type of debt enrolled.
The information provided on this page is for general informational and educational purposes only. It is not intended as, and should not be construed as, legal, tax, or financial advice. Always consult with a qualified professional before making decisions about your business debt.
Editorial Independence
We make money from some companies on this page. That doesn't change our rankings -- the editorial team scores every product independently, and the business side has no say in what we recommend.