Small Business Loans With Bad Credit

Mary asks…

How can a business reduce it’s debt without going bankrupt?

I have a very small business. I’m trying to figure out how to best pay off my loans and am not sure the bank is giving me the best deals. Right now I have about 10k on a business credit card, and 10K on a loan. The loan was given me 10 years ago and I’ve been accumulating interest by a few dollars each month past the payment. In other words, I never pay toward principle. Is there some way to transfer a loan so that I can get 0% interest for 6 months? I know it can be done with a credit card, or it could before the economy was so bad. I’ve heard of calling your creditors and asking them to settle? The bank has made 10k on this loan in just interest over the last decade. Anyway, advice or useful links appreciated. BTW, I have good credit.

admin answers:

The answer is the same for a business or a person. Spend LESS than you earn and PAY your debts. Everything else is USELESS information.

Donna asks…

Can anyone advise me on how to restructure my business debts?

I have a very small business. I’m trying to figure out how to best pay off my loans and am not sure the bank is giving me the best deals. Right now I have about 10k on a business credit card, and 10K on a loan. The loan was given me 10 years ago and I’ve been accumulating interest by a few dollars each month past the payment. In other words, I never pay toward principle. Is there some way to transfer a loan so that I can get 0% interest for 6 months? I know it can be done with a credit card, or it could before the economy was so bad. I’ve heard of calling your creditors and asking them to settle? The bank has made 10k on this loan in just interest over the last decade. Anyway, advice or useful links appreciated.

admin answers:

You’ve being paying on a $10K loan for ten years and you still owe the same amount? What interest rate are they charging you??? This rate has to be at least 30% and you’ll end up paying on this loan forever if you don’t make changes.

If you have excellent credit, then try to get a card with a low rate and transfer this loan to it. If you don’t have good credit then you are not in a good position.

Contact your local Red Cross for a referral to the local Consumer Credit Counseling Services (CCCS) in your area. They can negotiate much lower payments and interest rates. They do not negotiate settlements.I’m not sure if Consumer Credit Counseling Services (CCCS) allows personal business loans to be included in their Debt Management Plan….

If they don’t, then try to negotiate better interest rates on your own…If this does not work then you might want to think about restructuring this debt as part of a Chapter13 BK filing. This would force the creditor to accept a much reduced interest rate like 8%.

Ken asks…

How can I raise money to start a small business? Are there grants available for someone to start with?

I got notice that I’ll be laid off come October. I don’t know if I want to go and work for another company, or have to work for a temp agency. I want to start my own business, but money is tight. With the Credit market in such bad shape, I’m not about to ask for a loan. Are there sources for raising money for starting up a small business through grants?

Note: Anyone posting any work from home links will be reported.

admin answers:

Loans are sometimes available through the Small Business Administration for some (not all) of the needed money, thru banks, or thru friends and family. Grants to start a business aren’t generally available – ignore the websites that say they are, they’re scams.

Do you have a solid business plan written for the business you want to start? If not, get that done in any case – you’ll need it if you start your business, even aside from the financing.

Good luck.

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