The Bigger the Creditor, the Better!

I have found over the years that dealing with larger creditor entities usually improves my odds of reaching favorable settlement terms for my commercial debtor clients.  When you stop to think about this, it makes perfect sense.

A smaller creditor seeking financial remedy in a dispute will not be in as good of a position to forgive or write-off a large dollar amount.  They will want to squeeze their debtor companies for as much as possible simply because they truly need the funds to continue operations.

Larger entities, on the other hand, are able to continue business as usual even if they settle debts at substantial discounts.  They will have a larger capital base and can more easily absorb losses with little impact to their bottom line.

Don't make the mistake of shying away from large corporate or government creditors thinking they are too powerful to negotiate with.  You will find most are quite willing and able to work with you for discounted settlements to the ultimate benefit of your commercial clients.

Scott F. Soape