• 9AM - 5PM EST
    Monday - Friday
+1 (905) 232-3222

B2B Debt Settlement in Ontario

B2B debt settlement resolves what your business owes to suppliers, lenders and trade creditors through direct negotiation, usually for a reduced lump sum. There is no court filing and no insolvency record. It is the fastest route available when the business has access to funds and wants the matter closed.

  • Negotiated directly with business creditors
  • No court filing and no insolvency record
  • Typically resolves in 30 to 120 days
  • Works for trade, supplier and lender debt
  • Lawyers negotiating on your behalf
Call 1-905-232-3222

Want to know how much debt we can reduce for you?

Answer a few quick questions to see what legal debt relief options may be available to you.

What Is B2B Debt Settlement?

B2B debt settlement is a negotiated agreement between your business and its creditors to accept less than the full balance, usually as a lump sum or over a short schedule. It is a contractual arrangement rather than a statutory process, which is what makes it fast and private.

It also means it carries no stay of proceedings. Nothing stops a creditor suing while you negotiate, and every creditor must agree individually. That is the trade-off for speed and confidentiality.

At Metus Lykos Debt Law Firm we negotiate on your behalf as counsel. Creditors treat a demand differently when it arrives from a law firm.

What Business Debts Can Be Settled?

Trade and Supplier Debt

Business Credit Cards

Business Lines of Credit

Unsecured Term Loans

CRA HST and GST Arrears

Corporate Income Tax Debt

Commercial Lease Arrears

Merchant Cash Advances

Equipment Loan Shortfalls

Judgments Against the Company

Unpaid Professional Fees

Shareholder Loans

Debts That Cannot Be Settled This Way

CRA Source Deductions (director liability)

Secured Equipment Loans

Commercial Mortgages

Court Fines and Penalties

Debts Arising From Fraud

Click here to see how we can help!

How B2B Debt Settlement Works

Settlement is a negotiation, not a filing. The sequence below is what it looks like in practice.

01

We review the debt and your leverage

We look at what is owed, what is secured, what is disputed, and what each creditor would realistically recover if you filed instead. That figure is your leverage.
02

We establish what funds are available

Settlement needs money. That may be a lump sum, an asset sale, or a short payment schedule. Without a credible source of funds there is nothing to negotiate with.
03

We prioritise creditors strategically

Not every creditor is equal. Suppliers you need to keep trading with are handled differently from a lender you will never deal with again.
04

We open negotiations as your counsel

Approaches come from us, not from you. That changes the tone and it keeps you out of direct pressure from collections staff.
05

We document every settlement properly

A settlement is only worth the paperwork behind it. Each agreement must confirm the debt is fully released, not merely paused.
06

You pay the agreed amounts and the matter closes

Once funds clear and releases are signed, the obligation is finished. No filing appears on any public insolvency register.

B2B Debt Settlement: Pros and Cons

Pros

The benefits of a consumer proposal

  • Resolves in 30 to 120 days in most cases
  • No court filing and no public insolvency record
  • Confidential, so trading relationships are protected
  • You choose which creditors to approach
  • No trustee involvement and lower cost
  • The business keeps operating normally
  • Negotiations are handled by lawyers, not by you
  • Can be combined with other options if it stalls

Cons

The disadvantages of a consumer proposal

  • No stay of proceedings, creditors can still sue
  • Each creditor must agree individually
  • Requires access to a lump sum or short-term funds
  • A holdout creditor can undo the whole arrangement
  • Forgiven debt may carry tax consequences for the business

Is B2B Debt Settlement Right for Your Business?

  • B2B debt settlement may fit if:

  • The business owes trade, supplier or unsecured lender debt

  • You have access to a lump sum or can raise one

  • You want this resolved in months, not years

  • You need to avoid a public insolvency record

  • The creditor group is small enough to negotiate with

  • No creditor has yet obtained judgment against you

  • You want counsel negotiating rather than doing it yourself

If creditors will not settle, or you need the protection of a legal stay, a Division 1 Proposal binds every unsecured creditor once approved. If the company needs broader reorganisation, see corporate debt restructuring. For personal debt, our debt settlement service covers it.

We reduce your debt. Not your dignity.

B2B Debt Settlement FAQs

It depends on what they would recover if you filed instead, how old the debt is, and whether they want to keep trading with you. Anyone quoting a percentage before seeing your file is guessing.

No, and this is the key difference from a proposal. Settlement carries no stay of proceedings. If a creditor is close to judgment, a formal proposal may be the safer route.

Settled accounts are generally reported as settled rather than paid in full, which affects commercial credit reporting. The impact is usually smaller than a formal insolvency filing.

CRA does not negotiate the principal amount owing in the way commercial creditors do. Payment arrangements are possible, and relief from penalties and interest may be available, but CRA debt is rarely a settlement candidate.

Partial settlement is common and still useful. Holdouts retain their full claim, so if a significant creditor refuses, a formal proposal binding all of them may be the better answer.

Creditors will understand the position from the approach itself. What matters is how it is framed, which is a large part of why the approach comes from counsel.

Forgiven debt can have tax implications for the business. We flag it and coordinate with your accountant. It should be modelled before you settle, not after.

Settlement is contractual, fast and private, with no legal protection. A Division 1 Proposal is statutory, slower and public, and it binds every unsecured creditor while stopping collection action.

Yes, and a genuine dispute strengthens your position. Disputed amounts often settle at a steeper discount because the creditor is weighing litigation risk.

Our Service Area

Real Debt Help, Wherever You Are in Ontario

Metus Lykos Debt Law Firm proudly serves clients across the entire province of Ontario. Wherever you call home, our lawyers are ready to review your situation and explain your legal options — confidentially, and free of judgment.

Toronto

Markham

Mississauga

Brampton

Ottawa

Hamilton

London

Windsor

Don't see your city listed? We work with clients across all of Ontario, in person and remotely. If you live in the province, we can help.

Take the First Step Toward Becoming Debt-Free

Find out what your creditors are likely to accept. Book a free, confidential consultation with a business debt lawyer.

See how much debt we can reduce for you
Book a Consultation