Do Not Fall for the "Business Debt Settlement" Scam: Why you Should Never Escrow Money to Settle Business Debts
“Its what we learn after we think we know it all that really counts.”
-John Wooden
Do Not Fall for the "Business Debt Settlement" Scam: Why you Should Never Escrow Money to Settle Business Debts
Escrowing Money with so-called “business debt settlement” or “business debt negotiators” to Settle Business Debts Is a Catastrophic Mistake
escrowING MONEY =
money or funds kept in the custody of a third party and taking effect only when a specified condition has been fulfilled
When businesses face mounting debt, it’s common to seek out strategies to manage the financial pressures.
Escrowing funds with a “business debt settlement” or “business debt negotiator” to settle business debts might seem like a safe and logical option.
However, this approach is often a disastrous misstep that can exacerbate financial and operational problems instead of solving them.
Escrowing money to settle business debts can cripple your business and hasten its collapse
If you are even considering this route, you’re walking straight into a financial disaster.
This isn’t a solution—it’s a trap, and one that could destroy everything you’ve worked so hard to build and maintain over all the years past.
Escrow Chokes Your Business Cash Flow
Cash flow keeps your business alive. By escrowing money, you’re handcuffing your business’ most critical resource. Every dollar you lock away is a dollar you can’t use to keep your doors open.
Operational Chaos:
When cash is tied up in escrow, suppliers go unpaid, employees miss paychecks, and customers start looking elsewhere. How long can your business survive under those conditions?
No Room to Maneuver:
Escrowing money eliminates your ability to pivot. Emergencies, opportunities, or market changes? Forget it—you’ve willingly tied your own hands.
If you want your business to survive, you can’t afford to have your money sitting idle.
Go ahead — Try to Get Your Money and payments back from Escrow
Try to get your payments and escrowed money back from a “Business Debt Settlement” or “Business Debt Negotiator” that has it held in escrow when you need it for operations.
Its not going to happen. You hope that it will and assume that you can trust them, but think again.
Why are they even keeping it in escrow for you for an alleged settlement that may or may not happen in the future?
That is an absolutely crazy thing to do.
“Debt settlement” Escrow Is a Band-Aid on a Bullet Wound
Escrowing funds is a weak, short-term fix that ignores the real problems dragging your business down.
You’re not solving anything; you’re just delaying the potential and looming collapse.
Business Debt Doesn’t Disappear:
Escrow doesn’t erase debt or fix broken cash flow. It merely kicks the can down the road while your financial problems snowball.
The Clock Is Ticking:
Every moment you waste on escrow is a moment creditors grow angrier, interest piles up, and your business slides closer to insolvency.
Wake up.
You don’t need a delay—you need a real solution and…
giving money to anyone but your business creditors is an absolutely terrible decision.
Predatory “debt settlement” Escrow Services Will Bleed You Dry
Think business debt settlement escrow services are there to help?
Think again.
These third-party companies are predators circling your already struggling business.
Their fees and conditions will only drag you deeper into the pit.
Exorbitant Fees:
Every dollar you pay in escrow fees is a dollar that could have gone toward saving your business.
Exploitative Terms:
Locked into rigid, one-sided agreements, you’ll have no flexibility to adapt as your business evolves—assuming it even survives that long.
ALLEGED LEGAL REPRESENTATION & “LEGAL SERVICES”:
What are the alleged legal services or lawyers going to do when your creditor seizes your receivable and revenue under UCC Article 9 and you have no income? These alleged “legal services” offered by these predatory business debt settlement or business debt negotiator “programs” are just part of the scam
These companies don’t care about your success.
They profit off your desperation.
Don’t fall into their trap.
Escrow Will Destroy Creditor Relationships
Business creditors want their money—now.
Escrowing funds signals to them that you’re dragging your feet, and they won’t take it kindly.
Loss of Trust:
Business creditors see escrow as a stall tactic, and their patience will evaporate. Once trust is gone, future negotiations will be impossible.
Aggressive Legal Action:
Expect lawsuits, asset seizures, and relentless collection efforts as creditors fight to get what they’re owed.
If you think escrow will calm business creditors down, think again.
It will make them explode with fury and come charging at your business and its assets.
Escrow Is a Dead End, Not a Solution
Even if escrow helps temporarily, it’s not a long-term fix.
You’ll find yourself back at square one—or worse—before you know it.
No Strategy, No Future:
Escrow doesn’t solve your business debt, improve business cash flow, or help you grow your business. It simply delays your failure.
Time Wasted:
Every second you spend managing escrow is time stolen from real, actionable solutions.
Hope is not a strategy:
Hoping that your creditors are just going to sit there and wait for a settlement is delusional.
Your business deserves more than a quick fix.
It needs a plan for survival and growth developed by a professional who has navigated through business debt and cash flow distress situations.
The Alternatives That Actually Work
Don’t throw your business into the escrow and “Business Debt Settlement” abyss.
Instead, take control with strategies that address the root of your financial challenges:
FACE YOUR CREDITORS AND REASON WITH THEM
(OR HAVE AN ADVISOR DO IT ON YOUR BEHALF)
Work directly with creditors or hire an advisor to renegotiate terms.
Debt Restructuring
Work directly with creditors or hire an advisor to renegotiate terms.
Lower payments, reduced interest, and extended timelines can provide the breathing room you need.
Cash Flow Optimization
Cut unnecessary expenses, streamline operations, and focus on collecting outstanding payments. Freeing up cash is critical for survival.
Professional Help
A business finance and strategy advisor can be your lifeline. Their expertise will guide you to sustainable solutions that put your business back on track.
Boost Revenue
Launch targeted marketing campaigns, explore new revenue streams, or increase pricing where possible. Every additional dollar counts.
Sell Non-Essential Assets
Liquidate assets you don’t need to free up capital. It’s a tough decision, but survival demands sacrifice.
Escrow and “Business Debt SEttlement” Will likely Ruin You and your business.
Escrowing money to settle business debts isn’t just a bad idea—it’s a fatal mistake.
It ties up your cash, alienates creditors, and leaves you drowning in fees, risks, and unresolved problems.
Read some real life complaints from business owners that have dealt with Business “Debt Settlement” and “Debt Negotiator” companies.
These complaints are posted on the official Better Business Bureau website:
Costal Debt Resolve out of Florida / costaldebt.com
Slate Capital Management / Slate Legal Group / businessdebtmgt.com
Do not fall for Business “Debt Settlement” and Business “Debt Relief” Scams:
Business Debt Relief and Business Debt Settlement companies will destroy your Business.
The clock is ticking.
Your business survival depends on what you do next.
Don’t wait until it’s too late.
Setup an introduction meeting to discuss your situation and next best steps.
We pride ourselves on giving our clients the proper professional advice when it comes to business finance and strategy.
BERNARSKY ADVISORS
www.bernarskyadvisors.com
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WHAT IS THE BEST AND SAFEST WAY FOR YOUR BUSINESS TO DEAL WITH BUSINESS DEBT PAYMENTS WHEN YOU CAN’T GET REFINANCED?
It is NOT by stopping ACH payments.
It is NOT by taking on another business loan.
It is NOT ALWAYS a Refinancing
It is NOT by entering into a debt settlement program.
Find out the BEST strategies to get your Business back to where it was