Do you still have questions about AmerAssist Turnaround Management Corporation's Program?
The following page contain the answers to our ten most frequently asked questions.
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How can the restructuring of my commercial debt in a turnaround management program solve my immediate financial difficulties?
Entering into a Debt Management Program with AmerAssist Turnaround Management Corporation (TMC) will
buy you time with critical vendors and reduce your overall debt. All debt reductions reduce your liabilities immediately, strengthening your balance sheet and credit worthiness in the process. TMC assumes responsibility for all communication and negotiation with creditors, collection agencies and attorneys so that you can focus on developing your business. Then
one simple, monthly installment payment is distributed from your TMC account to your creditors based on the arrangements we have made.
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When is the best time to restructure my business related debt?
When your cash flow is inadequate to cover your monthly payables. This can happen if your business is cyclical and is in a slow period, or if days sales out-standing increase because your customers are paying your own accounts receivable late. Whether your difficulties were caused by the loss of a large customer or an industry slowdown, AmerAssist provides a better alternative without additional financing, or the need for any personal guarantees.
Even if you are planning to sell your business, a Debt Management Program that restructures your debt will add significant value (from the balance sheet enhancements associated with reduced debt, to stronger free cash flow projections as a result of deferred installments).
If you seek to avoid lawsuits, bankruptcy or foreclosure, or you simply want to
end harassing creditor or collection agency calls, AmerAssist can help.
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How does creditor leverage from personal guarantees and secured assets affect my debt restructuring?
Creditors will use any negotiating advantage, such as a personal guarantee (which continues even after a business is gone) to gain leverage. Another kind of leverage comes from creditors having a product or service that is necessary for your business to operate or a secured interest in an asset critical to your business. AmerAssist always takes the leverage of your creditors into consideration and prioritizes them before structuring settlement offers.
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How can AmerAssist satisfy my creditors with such small monthly installment deposits?
Creditors are provided with flexible options that range from an immediate reduced settlement payment to a deferred installment payment in full.
The final settlement and payment priority relate entirely to the time extension a creditor is willing to give you. Most important to you is that the mediation of a realistic restructuring solution, to satisfy your creditors, is always based on options within a budget that your business can currently afford. This is achieved through the disclosure process during mediation, which again compels cooperation.
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Why can’t I just negotiate with my creditors on my own?
TMC’s Business Debt Management Program will get you out of debt with submitted creditors faster and more efficiently than you could generally manage on your own. Most creditors prefer to deal with a
bonded intermediary who will intercede to assure the business has a realistic plan to restore its financial health that is fair and equitable to all cooperating creditors. A team of professional managers, negotiators (and staff attorneys when necessary) work with you and your creditors to develop a payment strategy based on what you can realistically afford given your current circumstances.
TMC works with all the major credit grantors and is able to capitalize on our history of making timely payments on behalf of our other clients to negotiate the best possible arrangements and discounts for you. AmerAssist TMC can often stop late charges, and get over limit fees and interest charges waived. And since a restructuring program yields more to creditors than litigation or bankruptcy,
self interest compels creditors to agree to a professionally managed plan that is realistic.
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How do I choose which creditors to include in my restructuring program?
TMC provides an easy-to-use guide on the reverse side of the Creditor Submission Template (sent along with this brochure). This guide helps you to determine which creditors should be included in a Debt Management Program. We will be happy to assist you in this process. We can reduce overwhelming debt into one affordable monthly payment to satisfy vendors (both critical and non-essential),
credit cards, loans (both secured and unsecured), lease obligations and
delinquent taxes.
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How can I maintain vital supply lines with priority creditors?
Since you select the debts to be submitted for restructuring, you have the option to exclude any creditor. Furthermore, you can always add them to the program at a later date. However,
AmerAssist understands the importance of vital supply lines with key vendors that are critical to your business. Simply designate a “critical supplier” status to these creditors and we will negotiate to
maintain an ongoing relationship (even if temporarily on a C.O.D. basis) as an integral part of the mediation process.
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What if a creditor is about to sue me, has already involved a collection agency or has already obtained a judgment, and refuses to settle?
The best opportunity to negotiate a satisfactory resolution, with an angry creditor, is prior to the filing of suit or placement with an agency. Therefore, AmerAssist should be brought in to help as soon as possible.
However, we can negotiate substantial reductions in most collection agency placements, court judgments and arbitration awards and restructure a lump sum obligation into deferred installments. The DMP mediation and disclosure process compels the acceptance of one of our settlement options, as the
most logical resolution for a creditor. And, this puts you back on the road to financial health.
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How will a debt restructuring program affect my credit?
If you have only been making sporadic payments, making reduced but consistent payments on a debt that has been decreased or deferred through a Debt Management Program will often have a
positive effect on a credit report. Since debt restructuring increases your available cash flow while reducing total debt, your improved capacity to repay debt will enhance your ability to obtain credit. If you already have a perfect credit score, reduced payments may temporarily reduce your score. However, in some cases TMC can even get creditors to re-age your account, meaning they will
report you current again. Then by facilitating consistent, monthly payments, the DMP will help you
reestablish a favorable credit history.
Delinquent debts have a derogatory impact on your credit report and may even prohibit you from obtaining critical vendor credit lines or new financing. If you have older business related debts,
call us for help today. We can reduce and/or restructure them, and clearing them off your books will
give you a fresh start.
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How much will it cost to use AmerAssist’s commercial Debt Management Program?
Since AmerAssist guarantees that the total of all installments paid to your creditors, including fees,
shall be less than the total due to creditors you submit – our services essentially cost you nothing. The debt reductions from your creditors more than pay for our services. In fact, we guarantee to
save you money or our services are free.
All of AmerAssist’s services are compensated solely for performance, based upon the amount of debt that is reduced, eliminated or restructured given what you can currently afford. After paying your creditors first, any pro-rata fee due is deducted from your same monthly installment payment and will be reflected in your monthly Account Status Report. Contact us today for a
free evaluation and quote with no obligation.
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