| Option | Can work well when | Watch out for |
|---|---|---|
| Talk to funders directly | One or two funders, a temporary dip, a funder with a hardship program | Get any agreement in writing |
| Negotiation through a firm like Saldo Vita | Several funders, ongoing business, need for a coordinated plan | Understand fees and confirm you approve every agreement |
| Refinance or consolidation | Strong revenue and credit, access to lower-cost capital | "Consolidation" offers that are just another expensive advance |
| Legal defense by an attorney | Lawsuits, judgments, questions about whether an MCA is really a loan | Legal fees and time; outcomes are uncertain |
| Bankruptcy (Chapter 11, Subchapter V, or Chapter 7) | Debt far exceeds what any negotiation can address | Cost, public record, court supervision; requires a bankruptcy attorney |
Many businesses use a combination, for example negotiation for most accounts while an attorney handles a lawsuit.
If you are not sure which path fits, request a review. If another option looks better for your situation, we will tell you.
Questions
Is bankruptcy better than negotiation?
Neither is better in every case. Bankruptcy provides court protection but has costs and long-term effects. Speak with a bankruptcy attorney to understand whether it fits.