Balance Street, Inc.
Location: 8500 Steller Drive, Building 5, Culver City, California, United States United States
Founded in: 2011
Stage: Revenue generating
Number of employees: 1-5
Funding history:
- Date: 01/2011, Seed: undisclosed amount
Short URL:
Followers (4)

Balance Street, Inc.

"You have nothing to lose but your debt."
Culver City, California, United States United States

Free debt settlement provided to consumers will save them from having to pay debt settlement companies up to 20% of their debt as a service fee. This frees up billions from the ecosystem allowing it to be distributed to creditor and consumer. Creditors save even more due to efficiency created and Balance Street monetizes the savings.

  • About
  • >
  • Activities
  • >
  • News
Company description

Balance Street is the premier direct marketplace between the consumer and creditor for the purpose of free debt settlement.  Our mission is to provide consumers an opportunity to relieve their debt burden and disinter-mediate debt settlement companies who charge exorbitant fees to consumer (up to 20% of total debt owed) to perform basic automatable tasks.  This means Balance Street frees up about 20% of the market inefficiencies created by the middlemen, which provides better financial outcomes for both Consumers and Creditors.

Balance Street delivers:

  • A secure, informative, educational and automated patent-pending system at no charge to consumers who want to settle their delinquent debt; 
  • Creditors with increased cash churn velocity, higher collections on settlements and lower costs, which amplifies their bottom line by a minimum of 20%-30%;
  • A revolutionary paradigm shift in the largely unregulated debt settlement business by providing debt resolution services at no charge to the consumer;
  • Many additional services for consumer in order to help them re-establish and improve their financial future.

Market Summary

The total amount of revolving debt in the United States is $852 billion dollars as of March of 2010, of which $835 billion is represented by credit card debt (98%).  Currently, 4.27% of all cardholders are at least 60 days late, this means that $35.6 billion is ready for settlement.  With a trending default rate projected to reach 13% in the current economic climate, $108.5 billion in debt is expected to be delinquent over the next few years.  Delinquent credit card debt alone (not including any other unsecured debt) is about $140 Billion over the next few years. The numbers are staggering, the economy is ready and the time is ripe for Balance Street.

Revenue Drivers

The current debt settlement industry fosters an adversarial role with creditors and extorts high fees from consumers who have very little resources to deal with their financial situation. Balance Street changes the alignment of interests by focusing on demonstrating metrics and real value to creditors who are incentivized to use Balance Street as a profit enhancement vehicle:

  • Creditors can reduce the number of headcount and associated expenses in their loss mitigation departments by as much as 75%.
  • Creditor recovery can increase by between 7% and 10% by eliminating the debt settlement companies.
  • Creditor accelerated cash churn will enable them to recover and redeploy cash faster to non-defaulting accounts which increases return on capital.
  • By charging creditors a low 3-8% transaction fee, with only a 5% market share, Balance Street can grow to between $75.6 and $200 Million in annual revenues to the currently addressable market.


  • Johnny Simon
    Johnny Simon | Team member
    Serial Entrepreneur, first to market debt settlement services on the internet. Also, created much of the procedures used in debt settlement industry.
Business model

Provide a free service to consumers allowing them to settle their debt direct with their creditor.  This saves the consumer about 20% in service fees which puts more money in their pocket to pay creditors.  Creditors pay a small transaction fee for settling debt on the system and are able to cut their costs by downsizing their loss mitigation department.  The concept will spread very fast and will save the creditor and consumer hundreds of millions, while dis-intermediating the plagued debt settlement industry.

Competitive advantage

First to market.

Team has history of successful execution.