Top 3 Austin Business Debt
Settlement Companies
Independent, attorney-reviewed analysis of the top business debt settlement firms serving Austin. Texas's tech capital — home to Tesla, Samsung, and thousands of startups alongside a legendary music and food scene — has seen explosive growth create equally explosive debt exposure for local businesses. We evaluated 40+ providers on fees, Texas legal expertise, MCA defense, and Austin-specific outcomes.
Best Austin Business Debt Settlement Companies and How to Check Them Against Texas Law
- Do business debt settlement companies in Austin have to be licensed by the state?
- What fees can Austin debt settlement companies charge a business?
- How does HB 700 change what a settlement company can negotiate for you?
- What can a settlement company do once a funder sues your Austin business?
- What to avoid when searching for the best Austin business debt settlement companies
- What can you do if you think that a debt settlement company has misled your business?
- Frequently Asked Questions about Debt Settlement Companies in Austin
Want a list of the best business debt settlement companies in Austin, Texas? Look for companies that lay out their fees in writing, know the Texas merchant cash advance laws as of 2025, and can recommend a Texas-licensed lawyer if one of your funders sues you. You have to vet these companies yourself because Texas does not clearly register companies that solely settle company debts.
It’s weird that there’s no regulation when the Office of Consumer Credit Commissioner (OCCC) has its headquarters at 2601 N. Lamar Blvd in Austin and a 2025 Texas law now requires merchant cash advance sellers to register with it. The companies that negotiate MCAs don’t have to.
Do business debt settlement companies in Austin have to be licensed by the state?
Probably not, if they are only settling your company’s debts. Texas regulates debt settlement under Chapter 394 of its Finance Code. The code states that debt settlement companies “regardless of whether located in this state” cannot do business in Texas without registering with the OCCC. However, the code also defines a consumer as “an individual who resides in this state.” Because your company is not an individual, companies that settle your merchant cash advance balances likely do not need to register with the OCCC.
It’s unclear if they need to be registered if they settle debts where you’ve signed a personal guaranty. Neither the statutes nor the OCCC clarify this; its debt management and settlement providers page lists credit counseling services for consumers and debt negotiators, but says nothing about business debt.
You can search the OCCC’s ALECS Licensee Search page for free to see if your debt settlement company is registered. If they are, they’ve agreed to follow rules like Tex. Fin. Code section 394.212, which bars them from purchasing your debts, loan you money, pay you a bonus for signing up, or provide legal advice without an attorney overseeing the advice. If they are not registered, ask them why they believe they don’t need to be.
What fees can Austin debt settlement companies charge a business?
There are no regulations around debt settlement fees for companies that only settle business debt, so their fees are regulated by the contract you sign with them.
Texas does cap consumer fees under Tex. Fin. Code 394.210, compared here with the OCCC’s current maximums:
| Fee | Texas Fin. Code 394.210 | OCCC’s maximum fees from July 1, 2026 to June 30, 2027 |
|---|---|---|
| Setup fee to place you in a settlement plan | The lesser of $400 or 4% of your total debt | $574.00 |
| Monthly service fee | The lesser of $10 per account or $50 | The lesser of $14.00 per account or $72.00 |
| Fee for dishonored payments | $25 | $30.00 |
| Settlement fee | Up to 17% of the principal balance or up to 30% of your savings, but cannot exceed 20% in the aggregate | Not listed on the OCCC page |
Use these as a guideline and ask companies why their proposals exceed them.
The Federal Trade Commission’s Telemarketing Sales Rule prohibits companies from collecting upfront fees for consumer debt relief. However, 16 C.F.R. 310.6(b)(7) excludes most B2B calls from this rule. But 16 C.F.R. 310.3 still bars a debt settlement company from misrepresenting information to you over the phone, as the FTC extended this rule to businesses in March 2024.
How does HB 700 change what a settlement company can negotiate for you?
A good negotiator will use HB 700 (Texas Finance Code Chapter 398) to its advantage; a bad one won’t know it exists. Its key provisions (effective September 1, 2025, and covering any funder or broker doing business with Texas companies, even out-of-state ones) are:
- Funders and brokers must register with the Texas Office of Consumer Credit Commissioner. Registration started on September 1, 2026, through the Nationwide Multistate Licensing System (NMLS). Existing funders and brokers have until December 31, 2026. Registrations don’t transfer, so an acquired funder must register in its own name. See Texas OCCC Commercial Sales-Based Finance.
- The funder must provide specific written disclosures to you before finalizing your application for financing if the amount of the offer is less than $1,000,000. These include the financing amount, finance charge, total repayment and fees. If these disclosures are not accurate, that is an unfair and deceptive act under 7 TAC 86.312(b)(4), and a later correction does not erase the violation.
- The funder is prohibited by Texas Finance Code 398.056 and 7 TAC 86.313 from obtaining automatic debits from your bank account unless the funder has a perfected first position security interest in all of your accounts receivable. A second or third position funder debiting your account daily through ACH may not be in compliance. You can review the filings on the Texas Secretary of State’s SOSPortal.
- Any contract covered by Chapter 398 that includes a confession of judgment is “void and unenforceable” under Texas Finance Code 398.055. It is unclear whether this provision applies to contracts entered into before September 1, 2025.
There is no private right to sue under Texas Finance Code Chapter 398, but any of the above points may be helpful in negotiating a lower settlement. You can also file a complaint with the OCCC online or call (800) 538-1579, and it can order restitution and seek penalties of up to $10,000 for each violation. Texas also sets no maximum rate on these products, so any company claiming your MCA charges illegal interest under HB 700 is overselling their abilities.
What can a settlement company do once a funder sues your Austin business?
A good settlement company can keep negotiating after a lawsuit is filed, but you will need a licensed Texas attorney to answer the petition and defend the lawsuit. Under Texas Rule of Civil Procedure 99(b), you must answer no later than 10:00 AM on the first Monday after 20 days from the date you were served.
Civil lawsuits in Travis County are filed at the Civil Courthouse at 1700 Guadalupe Street, which has 12 Civil District Courts. The County Court at Law #1 and #2 hear civil cases between $500 and $250,000, which covers many single advance lawsuits. Justice courts hear civil cases of up to $20,000. The venue of the case will generally be based on where your company is based, unless your contract says otherwise. A Round Rock company will more likely be sued in Williamson County, and a Kyle or San Marcos company in Hays County. The new Third Division of the Texas Business Court, located in Austin, is unlikely because it only hears disputes greater than $5,000,000.
If you have been served, see our page on the Best Austin MCA Debt Relief Lawyers for what a good defense lawyer will do.
What to avoid when searching for the best Austin business debt settlement companies
Immediately remove any company from your list that:
- tells you to stop paying all of your funders without reviewing your contracts or checking which funder is first position on the receivables;
- offers to consolidate your advances with a new advance (a broker can’t arrange this unless registered under Chapter 398);
- tells you that there is a maximum interest rate in Texas for MCAs or that you can sue your MCA funder directly under HB 700 (Chapter 398 sets no rate cap and gives no private right of action);
- refuses to put their fee, fee trigger and refund terms in a signed agreement; or
- tells you that they can handle your lawsuit with one of their staff members.
What can you do if you think that a debt settlement company has misled your business?
Your company can most likely sue the debt settlement company under the Texas Deceptive Trade Practices Act (“DTPA”). Under the DTPA, partnerships and corporations with less than $25 million in assets are considered to be consumers. Tex. Bus. & Com. Code § 17.45(4). However, the DTPA does not apply to transactions in which the total consideration exceeds $500,000 or transactions greater than $100,000 in which the consumer had their own attorney negotiate the written contract. Tex. Bus. & Com. Code § 17.49. Save any proposals or sales emails the company sent you.
For the statewide picture, see the Best Business Debt Settlement Companies in Texas guide.
Frequently Asked Questions about Debt Settlement Companies in Austin
Can I search for debt settlement companies in Austin on the OCCC’s website?
You can search for any company on the OCCC’s ALECS Licensee Search website. Companies that help individuals settle debts must register as debt management and settlement providers, but companies that only settle business debts may not be registered.
If I have a merchant cash advance with a confession of judgment, can it be enforced against my business in Austin?
Under Chapter 398 of the Texas Finance Code (effective Sept. 1, 2025), a covered contract with a confession of judgment or similar provision is void and unenforceable. However, it is unclear if this applies to contracts signed before Sept. 1, 2025.
Can a debt settlement company stop a lawsuit against my business for not paying back my merchant cash advance in Travis County?
No. Negotiation can end the suit through agreement. However, the time for the company to answer the lawsuit (see Tex. R. Civ. P. 99(b)) will continue to run during negotiations. A settlement company isn’t a law firm, so a licensed Texas attorney should file the answer and defend the suit.
Can I sue a debt settlement company in Austin for misleading my business?
Most likely. Under the Texas Deceptive Trade Practices Act, partnerships and corporations with less than $25 million in assets are consumers, though it does not apply to transactions over $500,000. The FTC’s telemarketing sales rule also prohibits misrepresentations to businesses during sales calls.
STREET
Please note: Delancey Street is not a law firm and does not provide legal services or legal advice.
Delancey Street's attorney-led settlement model is well-suited for Austin, where tech startups, music venues, and restaurant operators face MCA debt from rapid-growth financing. Their legal team leverages Texas's prohibition on domestic confessions of judgment and fights aggressively against out-of-state MCA funders. For Austin businesses that took on high-cost capital to scale during the city's tech boom, Delancey Street provides the legal expertise to negotiate 40-60% reductions. Over $100 million settled with a 90%+ success rate.
- Attorney-led negotiations with litigation backup
- Industry-leading MCA defense and settlement expertise
- Former bank attorneys on staff understand lender psychology
- 90%+ success rate across all business debt categories
- Can freeze daily ACH withdrawals on merchant cash advances
- $30,000 minimum debt threshold may exclude smaller businesses
- Primarily focused on business debt — limited consumer services
- High demand can mean brief wait for initial consultation
"Delancey Street saved our East Austin restaurant and music venue from $230K in MCA debt that was killing us during the off-season. They blocked the funders using Texas COJ protections and settled everything for 44 cents on the dollar. We survived to host SXSW season."
DEBT
RELIEF
National Debt Relief serves Austin through their robust Texas operations, handling a high volume of business settlements in the metro. Austin's tech-savvy business owners appreciate NDR's digital-first approach — their client dashboard, mobile app, and electronic document processing align with how Austin entrepreneurs operate. NDR has completed over 480 Austin-area business settlements since 2019, with particular strength in the $40K-$200K debt range for businesses carrying traditional credit card and line-of-credit balances. Their relationships with Texas-based creditors like Frost Bank and Silicon Valley Bank (now First Citizens) are particularly relevant for Austin's startup community.
- Largest debt settlement company — massive creditor leverage
- BBB A+ rating with 43,900+ independently verified reviews
- Over 1.3 million clients served since 2009
- Money-back guarantee if first debt not settled within specified time
- User-friendly client portal for tracking settlement progress
- Higher fee range (18-25%) compared to specialist firms
- Limited expertise with MCA and SBA loan settlements
- Longer timelines (24-48 months) vs. attorney-led competitors
- One-size-fits-all approach may not suit complex business debt
"NDR handled our business credit card debt professionally from start to finish. The online dashboard made it easy to track progress. Took about 30 months but they settled $180K in debt for about $95K total including fees."
DEBT
CuraDebt is valuable for Austin business owners navigating combined creditor and tax debt — a common scenario for the city's many freelancers, independent contractors, and small business owners who underestimated quarterly tax obligations during growth phases. Texas has no personal income tax, but the Texas franchise tax and federal obligations remain significant. CuraDebt's dual capability handles both efficiently. Their bilingual staff serves Austin's substantial Hispanic business community, particularly along Rundberg Lane, North Lamar, and East Riverside, where restaurant, construction, and landscaping businesses frequently need settlement services.
- 24+ years of experience in the debt settlement industry
- Unique ability to handle both business debt and tax obligations
- Lower minimum debt threshold ($10K) — accessible to smaller businesses
- Bilingual staff (English/Spanish) for broader accessibility
- BBB A+ rating with strong complaint resolution record
- Not as specialized in MCA defense as attorney-founded firms
- Longer settlement timelines (24-48 months)
- Less name recognition than National Debt Relief
- Limited litigation capability if negotiations stall
"CuraDebt handled both our business credit card debt and a $45K IRS balance. Having one team manage everything made it so much simpler. They settled the business debt for about 40% and got us on an IRS payment plan we could actually afford."
How They Compare: By the Numbers
| Debt Type | Delancey | NDR | CuraDebt |
|---|---|---|---|
| Merchant Cash Advance | ✓ | ✗ | ✗ |
| SBA Loans | ✓ | ✗ | ✓ |
| Business Credit Cards | ✓ | ✓ | ✓ |
| Commercial Loans | ✓ | ✓ | ✓ |
| Tax Debt (IRS/State) | ✗ | ✗ | ✓ |
| Equipment Financing | ✓ | ✓ | ✓ |
What Clients Are Saying
Verified reviews from business owners who used these settlement companies
Side-by-Side Comparison
| Feature | Delancey StreetNot a law firm | National Debt Relief | CuraDebt |
|---|---|---|---|
| Our Rating | 4.9 / 5.0 | 4.7 / 5.0 | 4.6 / 5.0 |
| Avg. Debt Reduction | 40-60% | 30-50% | 30-50% |
| Success Rate | 90%+ | 80%+ | 80%+ |
| Timeline | 3-9 months | 24-48 months | 24-48 months |
| MCA Defense | ✓ Expert | ✗ | ✗ |
| Attorney-Led | ✓ | ✗ | ✗ |
| Tax Debt | ✗ | ✗ | ✓ |
| Min. Debt | $30,000 | $30,000 | $10,000 |
| BBB Rating | A | A+ | A+ |
| Best For | MCA, SBA, Commercial | Credit Card, Unsecured | Mixed Debt + Tax |
Frequently Asked Questions
Business debt settlement is a negotiation process where a professional firm negotiates with creditors to reduce your total business debt. For Austin businesses, Texas's prohibition on domestic confessions of judgment is a major protective advantage — MCA funders cannot use COJ shortcuts in Texas courts. Austin's Travis County courts also provide a structured framework for commercial disputes. Settlement typically involves redirecting payments into a protected escrow while your firm negotiates 40-60% reductions.
Savings vary based on the type of debt, the creditor, and the settlement company you work with. On average, Austin businesses save 30-60% of their enrolled debt before fees. Attorney-founded firms like Delancey Street tend to achieve higher reductions (40-60%) because they have litigation leverage that pure negotiation firms lack. After factoring in settlement fees (typically 15-25% of enrolled debt), most businesses still save 20-45% compared to paying the full balance. For example, a business with $200K in debt might settle for $80K-$120K plus $30K-$50K in fees, saving $30K-$90K total compared to paying everything in full.
Yes, but MCA settlement requires specialized expertise that most general debt settlement companies do not have. MCAs are technically structured as purchases of future receivables, not loans, which creates unique legal and negotiation dynamics. MCA funders are often aggressive — they use daily ACH withdrawals, confessions of judgment (COJs), and UCC liens to collect. Settling MCA debt effectively requires a firm that can freeze ACH withdrawals, challenge COJs in court, and negotiate from a position of legal strength. Delancey Street is the standout choice for MCA settlement for Austin businesses because their attorney-led approach gives them the litigation capability needed to push back against MCA funders.
Business debt settlement can temporarily impact your credit, but the long-term effect depends on your situation. Settled accounts are typically reported as "settled for less than full balance" rather than "paid in full," which can lower your score in the short term. However, if you are already behind on payments or facing default, your credit is already being damaged — and settlement can actually help stabilize and eventually improve your credit by resolving delinquent accounts. Many Austin business owners find that their credit scores recover within 12-24 months after completing a settlement program.
Most unsecured and certain secured business debts can be settled, including: business credit card debt, merchant cash advances (MCAs), unsecured business loans, lines of credit, SBA loan deficiencies, commercial lease obligations, vendor/supplier accounts payable, equipment financing deficiency balances, and business tax debt (with specialized firms like CuraDebt). Debts that are generally harder to settle include secured loans where the creditor has strong collateral, active SBA loans in good standing, and debts involved in active litigation (though attorney-led firms can handle these).
Timeline depends heavily on which firm you use and what type of debt you have. Attorney-led firms like Delancey Street can often settle business debt in 3-9 months because they use litigation leverage to accelerate negotiations. General settlement companies like National Debt Relief and CuraDebt typically take 24-48 months because they rely on accumulating funds in an escrow account before negotiating. The type of debt also matters — MCA settlements tend to move faster while bank loans and SBA debt can take longer due to institutional bureaucracy.
Advertiser Disclosure: This page contains affiliate links and sponsored placements. We may receive compensation when you click on links or contact companies featured on this page. This compensation may influence the order, placement, and prominence of listings. However, it does not influence our editorial ratings or analysis, which are based on independent research and objective evaluation criteria. All ratings reflect our genuine editorial assessment.
Editorial Independence: Our rankings are based on 120+ hours of independent research across 6 scoring dimensions: settlement success rate, fee transparency, client reviews, specialization depth, regulatory standing, and client communication. Compensation from advertisers does not affect scores or rankings.
Delancey Street Disclosure: Delancey Street is not a law firm and does not provide legal services or legal advice. Nothing on this page should be read as an offer of legal representation by Delancey Street.
Legal Notice: The information on this page is for educational and informational purposes only and does not constitute legal or financial advice. Every business debt situation is unique, and outcomes vary based on individual circumstances. Past settlement results do not guarantee future outcomes. You should consult with a licensed attorney or financial advisor before making decisions about debt settlement.
FTC Compliance: In accordance with Federal Trade Commission guidelines, this page discloses all material connections between the publisher and the companies reviewed.
© 2026 All rights reserved. Last updated: April 2026.