I operate 2 walk-up desert business open seasonally. They have stable and moderately growing sales numbers for over 10 years. Some years, like this one, I need a bridge loan to carry me through the off season. But, instead I figured if I would roll all my existing business loans, LOC's and credit card loans into a single loan I could increase my cash flow by $40,000. This would allow the business to operate without the bridge loans.
I have already gone to my banker that I have had over 5 years experience with and who holds all my loans. I never missed payments, etc. But, just recently when I proposed the loan consolidation I was turned down because of this loan environment we are in. I have been putting more of my own money (daughter's college funds, credit card money, etc.) to carry me through the off season but this is not sustainable until I open.
I would hate to walk away from this business because it does create a positive cash flow and with a little reorganization of debt it would allow the company to sustain itself.
Any ideas??? Here is a stable business with a positive cash flow, with approximately $47,000 in interest payments that needs some debt consolidation that would be no problem in normal times.
