When To Reconsider Obtaining a Business Loan?

So, buddy, you’re running a small business and questioning how a business loan could maybe weigh on your credit score. Well, my friend, that entirely banks on a couple of things. The majority of the time, a business loan default won’t dent your personal credit score. Still, there are a few conditions where it just might, and that’s what Lawscape and the Lawscape are here for. We’ve got your back and we’re ready to tell you when to steer clear of business loans.

Business Loan: When You Should Say No

Here’s the deal: taking a business loan isn’t always a smart move, even if you’re sure you can repay it. If your business is still wobbly and figuring things out, better not to jump into a loan. With little to no revenue coming in, loan repayment might prove tricky.

Plus, if your personal credit is in the dumps, getting a business loan may be a rock and a hard place. You see, lenders may tag you as a high-risk borrower and may offer less appealing terms, like inflated interest rates. If your business is not in dire need of cash, it’s sensible to wait until your personal credit improves.

The Consequences of a Defaulted Business Loan

Think about it: You’ve defaulted on a business loan. Ouch, that’s going to leave a mark on your personal credit score! It’s similar to how defaulting on any other type of loan would affect your credit score. Be certain you can keep up with loan payments before applying.

The Rules of Engaging Business Loans

Okay, so we know there are a handful of situations where getting a business loan isn’t wise even if you’re certain about repayment. Having a business in its initial stage of growth, for instance, may not be an opportune time to embark on a loan since revenue might lack consistency.

More Scenarios to Keep an Eye On

There are a few other scenarios where a small business loan default could possibly tweak your personal credit score. For instance, if you use a personal guarantee to secure the loan and default on it, that could alter your personal credit score. Also, if you’ve pledged your quaint little home as collateral for the business loan, defaulting on it could shake up your personal credit score.

Lawscape – Your Financial Lifeline

At Lawscape, we’ve made it our business to help small business owners get out from under the pressures of bankruptcy and SBA loan default. We can guide you through whatever credit situation your small business is facing. Find yourself in a hole of over $30,000? Don’t sweat it! Get in touch with us to discover how we can put you back on a sound financial track.

Benefits of Engaging Lawscape

Check out our scorecard: we have bundled up millions of dollars in SBA debts through Offer in Compromise and Negotiated Repayment Agreements. This has saved our clients from resorting to bankruptcy or the dreaded home foreclosure.

We’ve defended millions of dollars in Treasury debts through AWG Hearings, Treasury Offset Program Resolution, Cross-service Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements.

Our Attorneys, led by Lawscape, are sanctioned by the Agency Practice Act to represent Federal Debtors on a national scale before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.