Software & Hi-Tech


Here are a few of the common ones that we get, along with answers to the questions.

Does this process impact my credit score?

Usually – no. Merchant cash advances aren’t reported to credit agencies. They aren’t even traditional loans. As a result, successful payment or lack of successful payment doesn’t impact your score. There are other types of loans that may impact your score. When we work on your custom plan to satisfy your debts we will work with your creditors to avoid any impact to your score whenever possible. As with any process all the benefits as well as the costs will be considered before you accept any settlement.

What is a Trust Account?

A trust account is an account we open for you and hold in trust for you. This is where your program deposits are placed. Instead, of your former payments to one or more creditors being made separately and sometimes on a daily basis, you will be making just one deposit into your trust account on a weekly or monthly basis. Your trust account will be used to satisfy all your creditors, cover any company and bank fees and can fluctuate depending on the needs of your business. It is on average ½ of the total amount you were previously paying your creditors. Because it is your account, you will always have complete access to it through your client portal. You will be able to see how every dollar is spent out of your account and how every transaction is consistent with the plan we developed for your business.

What is a Hardship Letter?

A Hardship Letter is a letter which our company will assist you in drafting. It outlines the circumstances that led your company to its current financial hardship. It reminds the creditor that your business has fell on hard times and what obstacles you face in getting back to financial solvency. It is all part of the process of letting the creditor know why we represent you and why the initial payment terms you agreed to are unworkable at the current time.

What is Arbitration?

Arbitration is a forum to settle disputes instead of resorting to full blown court proceedings. It is more of a relaxed environment where an individual, usually an attorney or retired judge, will decide a fair outcome to your situation. Arbitration is not usually needed in the vast majority of cases. It is something that the Premier Team will avoid when at all possible. However, in the minority of cases where it is necessary, we protect our clients by providing them with counsel through the initial stages of legal representation, which includes the summary proceedings of Arbitration and or courtroom litigation.

Who qualifies for the Premier Program?

If you are a business owner who is currently unable to pay your creditors due to an actual and definable financial hardship you are likely to qualify.

What is a Merchant Cash Advance exactly?

Merchant cash advances are made to a business in exchange for a percentage of that business’s daily income. They are not loans instead, they are a sale of a portion of future sales. As a result, they are not covered by state usury laws (which limit lenders from charging very high interest rates). For this reason, the actual percentage that a business pays can be as high as 100% or more. Some compare these agreements to individual Payday loans. These exorbitant rates can become an extraordinary burden in difficult times when revenue decreases. However, we remind lenders that the contracts allow for fluctuations in payments and are not linked directly to the same dollar amount that the business was paying at the commencement of an agreement.

Have you taken out a Merchant Cash Advance and are having trouble keeping up with the payments?

At Premier Debt Management we can negotiate new payments under the contract based upon your current revenue stream and avoid a default.

Have you taken out a Merchant Cash Advance and defaulted on your payments?

We can help. At Premier Debt Management we can negotiate new terms based upon your current revenue stream.

Taken out a Merchant Cash Advance?

Did you know that the contract you signed allows for an adjustment in the payments, based upon your current revenue and that the terms never have to revert back to the original payment terms? Contact the Premier Team to learn more. These agreements were written to allow you to renegotiate the terms based upon your current revenue. If you are struggling to pay your MCA, call the Premier Team today!

What is a “success fee”?

A success fee, or as Premier calls it, a “savings fee,” is a fee charged as a percentage of what the Debt Management Company has saved you on the principal of your loan. This is a fee that is charged in addition to the standard program fee and this is charged regardless of how much a company saves you. However, at Premier you will not be charged a “success fee” unless the Premier Team saves you more on the principal than you paid us in program fees. In other words, if the Premier Team has saved you $10,0000 in principal and that is the same amount as our program fee, we waive the success fee. What this means to the client is that our Premier Program in has essence, cost you nothing.

Is a Promise from a Debt Management Company that they will Save you Money on Principal a Guarantee?

Any promises to save you a standard percentage, ex. 40%, is not a real promise and there is no guarantee. Instead, every case is unique. Any alleged promise to save you a certain amount on principal is a false promise. For this reason these companies are very unlikely to put any such “promise” in writing. Instead, the Premier Team will give you the best representation and will only earn an additional fee if we save you more on principal than what you paid into the program. This is a promise and we make in writing.