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 60%+ of MCA funders are headquartered in NY — Yellowstone, Everest, CFG, Fox Capital, Libertas, all within 20 miles of Midtown.
- 2 NY CPLR 3218 (2019) limits confession-of-judgment enforcement against out-of-state merchants — major leverage.
- 3 NY Commercial Finance Disclosure Law (CFDL, 2023) requires MCA funders to disclose true APR equivalents — another reclassification angle.
- 4 Delancey Street's NYC HQ is at 54 W 40th Street, walking distance from NY Supreme Court (60 Centre St) — fast filing access.
- 5 NY courts are more receptive to reconciliation-clause arguments than most states.
- 6 Settlement outcomes in NY average 32-42 cents on the dollar vs. 40-55 cents nationally, because funder proximity creates urgency.
- 7 For NY small-business cases, always confirm the firm has a NY-licensed attorney on staff, not just a registered office.
New York is ground zero for business debt in 2026. The state hosts 60%+ of all MCA funders, NY courts see more confession-of-judgment cases than the rest of the country combined, and a 2019 state law (CPLR 3218) created specific leverage that out-of-state businesses can use against NY MCA funders. The firms below all have real NY presence — meaning NY-barred attorneys, familiarity with NY courts, and relationships with the funders headquartered here. Delancey Street at 54 W 40th St is our top pick because their office is a five-minute walk from the NY Supreme Court.
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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
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.
Head-to-Head: Compare Top Business Debt Firms
Pick any two firms to compare side-by-side across fees, services, and outcomes.
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.
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
|
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 |
Our Top Picks
1. Delancey Street
Delancey Street's Midtown Manhattan office handles more NY MCA cases per month than any firm on this list — and they're five minutes from the NY Supreme Court for emergency motions. 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.
Show Pros & Cons
Pros
- Affiliated law firm (Spodek Law Group) litigates when funders sue — same team, same case file
- Specialists in MCA defense, UCC-1 lien removal, and vacating confessions of judgment in NY
- Free consultation includes a full cash-flow analysis and a written settlement roadmap before enrollment
- Clients avoid bankruptcy in roughly 85% of cases
Cons
- $25,000 minimum enrolled debt — smaller balances are referred elsewhere
- Primarily business debt; consumer-only cases are a secondary focus
2. Spodek Law Group
- Approach
- Attorneys
- Engagement
- Retainer
- Timeline
- Case by case
3. Grant Phillips Law
- Approach
- Attorneys
- Engagement
- Retainer
- Timeline
- Case by case
4. National Debt Relief
- Min. Debt
- $7,500
- Avg. Fees
- 15-25%
- Timeline
- 24-48 months
5. NYC Business Debt Relief
- Min. Debt
- $15,000
- Avg. Fees
- 18-25%
- Timeline
- 12-24 months
6. Upstate Business Relief
- Min. Debt
- $10,000
- Avg. Fees
- 20%
- Timeline
- 18-36 months
7. CuraDebt
- Min. Debt
- $5,000
- Avg. Fees
- 20%
- Timeline
- 24-48 months
8. Distressed Loan Advisors
- Min. Debt
- $10K
- Avg. Fees
- Flat $2K-$15K
- Timeline
- 6-12 months
9. Business Debt Relief Law Group
- Min. Debt
- $100K
- Avg. Fees
- 20-30%
- Timeline
- 6-18 months
10. Accredited Debt Relief
- Min. Debt
- $10,000
- Avg. Fees
- 15-25%
- Timeline
- 12-36 months
How They Stack Up
| Metric |
Delancey Street Top Pick
|
|
|
National Debt Relief |
|
|
CuraDebt |
|
|
Accredited Debt Relief |
|---|---|---|---|---|---|---|---|---|---|---|
| Min. Debt | $25,000 | Attorneys | Attorneys | $7,500 | $15,000 | $10,000 | $5,000 | $10K | $100K | $10,000 |
| Avg. Fees | 15-25% of enrolled debt | Retainer | Retainer | 15-25% | 18-25% | 20% | 20% | Flat $2K-$15K | 20-30% | 15-25% |
| Timeline | 3-18 months | Case by case | Case by case | 24-48 months | 12-24 months | 18-36 months | 24-48 months | 6-12 months | 6-18 months | 12-36 months |
| Rating |
4.9
|
4.9
|
4.6
|
4.3
|
4.2
|
4.0
|
4.0
|
3.9
|
3.8
|
3.7
|
I compared several companies before choosing one, and the reviews on this site made all the difference. Transparent and honest.
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.
How We Tested
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.
Real Settlement Outcomes
MCA & Commercial Expertise
Fee Transparency & Structure
Client Experience & Retention
Evaluation Weight Distribution
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.
Frequently Asked Questions
Q: Why is NY the best state for MCA defense?
About the Author
Todd Spodek · Managing Partner, Contributor at Zogby
NY Bar, 20+ Years Experience, Featured in Bloomberg & WSJ
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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.
Economic Snapshot
Source: Federal Reserve Economic Data (FRED). Indicators refresh daily.
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What kind of business debt are you facing?
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.