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    12 Replies Latest reply on Jul 8, 2009 3:13 PM by bentenn

    Need Help with SBL

    ZenSpirit Newbie

      I've purchase an established business in Oct/08 and have been doing
      well so far. There is no astronomical groth but it is paying itself.

      I've used my personal credit (about $50,000) to fund the business. I
      would like to transfer that debt to the business since it hurts my debt
      ratio and my credit scores hvaing so much debt as an individual

      I am thinking of aplying for a Small Business Loan or line of credit so the
      business can pay what I loaned to the corporation. Is this possible?
      Can someone point me in the right direction?

      I've contacted my local Bank rep, but I have not received a response.
      Thank you in advance,
        • Re: Need Help with SBL
          amspcs Ranger
          If your business accepts credit card payment, then you may be able to get a cash advance on
          your cc receivables. Feel free to email questions.

            • Re: Need Help with SBL
              ZenSpirit Newbie
              Thank you.

              Yes, my business has a merchant account.

              However, I am not sure how the repayment terms would be if I request cash advance, and how much would cost me (or my businness). I basically would like to get rid of the debt on my personal credit.
              Do you think this would help ?

              Thank you in advance.
                • Re: Need Help with SBL
                  wilfin Adventurer
                  How is your personal credit after leveraging so much on credit cards? Merchant cash advances can
                  be expensive but may be the lesser of two evils to get your personal credit back in order. There may be
                  several options for you, but without further details it's difficult to say. Feel free to contact me at the info
                  on my profile.
                  • Re: Need Help with SBL
                    amspcs Ranger
                    Only one way to find out, and that's by applying. There is no cost or obligation, we solicit from
                    several different sources, not just one, to assure you the best possible fit. If interested, provide email
                    contact info and I'll get the ball rolling for you.

                • Re: Need Help with SBL
                  LUCKIEST Guide
                  Need Help with SBL, Welcome

                  Do you know about SCORE?? SCORE is FREE and you can contact them online.

                  You can choice the Counselor with a banking background and ask them. It is FREE.

                  Also Barry from amspcs is a good man to talk to.

                  Good luck, LUCKIEST
                  • Re: Need Help with SBL
                    bentenn Adventurer
                    You can contact the Small Business Development Center near you for no cost professional business advice and counseling. then click on Local Resources then click on SBDC.

                    May I suggest that your key issue is not whether the debt is personal or with your small business but rather how and over what period of time you will pay off this loan. I would suggest you review the past years P&L of this business and compare it to your recent income stream and flow of expenses to see how you can make the business more profitable. During this recession, all expenses are negotiable as are payment terms.

                    Then review the effectiveness of your sales and marketing efforts to grow revenue, particularly profitable revenue where your pricing allows for good margins. Once all this is done you may be able to project when and how you can pay off this debt. Lastly, check with your SBDC counselor for the new SBA ARC loans where the SBA will provide a loan of up to $35k to pay the cost of interest and principal on debt (with the business repaying you the amount you have lent it) for up to 6 months, then provide you with 12 months of no payments and a repayment plan over 5 years at zero interest.

                    Good luck. Ben