| What it is | Renegotiating each MCA balance and schedule directly with the funder toward written terms, which may reduce the balance, lengthen the schedule, or both | Legal representation: defending a lawsuit, responding to a judgment, challenging contract terms, and sometimes negotiating | A federal court process that reorganizes (Subchapter V of Chapter 11) or liquidates (Chapter 7) the business under a judge’s supervision | A new advance whose funder deposits money to cover your existing daily and weekly drafts while pulling a smaller payment of its own |
|---|
| Cost | Fees for the firm’s services, set out in the program documents you review and sign before any work begins. Federal law has barred consumer debt relief firms from charging a fee before a debt is actually resolved since October 27, 2010, per the Federal Trade Commission, and business debt sits largely outside that rule, which is why how a firm structures its fees is the first thing to read. Anchor Resolve’s fees are scoped per case and never published as a percentage | Hourly billing or a retainer; ask for the engagement letter first | Filing fees, a licensed attorney’s fees, and in Subchapter V a trustee; the debtor pays creditors from projected disposable income under the plan | A new factor rate on the new advance, paid on top of every existing one; it adds cost, it does not remove any |
|---|
| Timeline | Set by each funder’s response. How long it takes depends on how many positions you hold, what your documents say, and how each funder responds. Anchor Resolve promises no timeline and never promises weeks | Set by the court’s calendar and the funder’s conduct | Subchapter V requires the debtor to file its plan within 90 days of the case beginning (11 U.S.C. section 1189(b)); the whole case runs longer | The term of the new advance, typically stated in weeks; the existing advances keep their own terms |
|---|
| Effect on the business | Keeps operating; the personal guarantee stays in force until the written terms are met | Keeps operating during a defense; a judgment can reach the business and, through the guarantee, the owner | The automatic stay pauses most collection on filing; the business operates under court oversight and public record | Keeps operating with lower outflow for the term, then faces the full stack plus the new balance |
|---|
| Effect on credit | May affect business and, where a personal guarantee exists, personal credit; nothing about it prevents a funder from reporting | Depends on the outcome; a judgment is a public record | A bankruptcy is a public record and may appear on an individual’s consumer credit report for up to ten years under the Fair Credit Reporting Act, 15 U.S.C. section 1681c | Not a credit event by itself; the added obligation raises default risk on every position |
|---|
| Who can do it | A debt relief firm, or the owner directly | Only a licensed attorney | Only through a licensed bankruptcy attorney, in practice | A reverse consolidation funder; Anchor Resolve does not sell them |
|---|
| Who it fits | An operating business, current or recently behind, whose deposits can carry one manageable payment | Anyone served, anyone with a judgment entered, anyone whose contract terms are the fight | A business that cannot survive even with lower payments, or that needs the automatic stay to keep the doors open | Rarely the right fit; at most a short bridge for a business with a documented revenue recovery weeks away |
|---|
| Main risk | Funders can keep collecting, file lien notices, and sue while talks run; nothing requires a funder to negotiate | Cost with no assured result; a court can rule against you | Public record, loss of control to the court, and in Chapter 7 the end of the business; the guarantee may survive the business’s case | Deepening the stack: it pays nothing off and adds a new fee; providers themselves report clients arriving with three to seven advances (Barchart, January 2025) |
|---|
| When it is the wrong choice | When the business cannot survive at any payment. A filed suit or an entered judgment does not rule it out; it means a licensed attorney handles the court part while the positions are worked | When there is no suit, no judgment, and the problem is cash flow, not a legal dispute | When the business is viable at a restructured payment and has not been sued | Almost always, unless a documented recovery is weeks away and every existing contract permits it |
|---|
