It is no surprise that once again small and mid-size businesses are impacted, last time radical COVID lockdowns, this time stagflation. What is a business owner supposed to do?
A business owner you can take advantage of the interest rates that are still relatively low before they go up even more in 2023. If you are accumulating more business debt during stagflation, review your accounts receivable. If you still have outstanding business debt from post COVID and additionally more with the stagflation, review your options.
Business Credit and Personal Credit
As a business owner, maintain your credit scores at 680 or better to get that low interest rate on an asset based loan or SBA lending, these programs continually provide lower rates to balance your business debt.
Alternative business lending provides options for business owners who have a 660 credit score or less. You can simply check your credit at Experian.com or MyFico.com. Your business credit is also imperative for business lending, if your business credit reports as high or moderate risk, it is time to review your business credit report and tweak, fix or settle whatever is necessary to acquire your new business loan. Simply go to Experian Business and Dun and Bradstreet. You may also order your business credit report through Equifax Business.
Lending Options for Consolidating Distressed Business Debt
There are several business lending alternative options, and it depends on your industry. Click here for a list of industries that are available for business financing. Take a make sense approach when business financing is available for your business. If you opt out of a business consolidation loan, opt into settling your business debt.
The worst thing you can do to your business is file a Chapter 11. If you already filed a Chapter 11, lending options are still available like our asset based lending program that allows a debtor in possession. The less business debt you petition for your Chapter 11, the more eligible your company is for business lending and commercial lending.
Example: You defaulted with your commercial real estate loan and was unable to modify your loan with your lender. To save your business and property, you filed a Chapter 11 and listed the defaulted commercial real estate loan and a two other creditors. If there is equity in the commercial property or if the commercial real estate property is an income producing property, you are eligible for financing, even though you are in a Chapter 11.
Your other option is our Asset Based Lending product that will allow you to refinance your creditors out of your Chapter 11. Interest rates on this program are still relatively low, an asset based loan is securitized with your tangible business assets.
Example: Your only tangible assets are inventory, accounts receivable, vehicles and equipment, which are collateralized for your business line of credit. This available asset based loan allows a Chapter 11 buyout.
For more information on how we can locally help you with your Business Debt Relief in Cape Coral and Fort Myers Florida please fill out the online contact form about your concerns or give us a call at 239.260.4602. Read what our valued clients have to say about First Pro Capital and Credit Consulting Experts on our Testimonials page.