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Several new business buyers in the United States use SBA (Small Business Administration) loans to fund their first business purchase or a line of credit. There are some definite pros and cons for using these funds that business buyers should be aware of. I’ve listed 5 of the pros and cons so you can begin to evaluate the process for yourself. Remember all lenders expect to be repaid and businesses are not 100% fool proof.

1. All owners of 20% of the business are required to give a personal guarantee- When you go to your business banker they are going to request you to sign an application and a loan that commits you to a personal guarantee for the money you are borrowing. The bank is guaranteed by the federal government that they will get their money back if your business fails. On your loan documents it will state the percentage of the guarantee by the SBA. In the event of your default they can legally pursue all borrowers with personal guarantees.

2. SBA 7(a) loan lends up to 90% of the loan to value of your business purchase with real estate- Lenders have now increased their loan to value lending limits to encourage more business buyers and entrepreneurs to stimulate the economy. Not all lenders will lend up to 90% of the purchase.

Continue reading ‘Should I Use an SBA Loan to Buy My First Business?’ »

Like credit card companies, there are a number of credit repair facilities out there who are simply out to make money, not really help your situation. Credit cards are as common as cell phones today, just about everybody has one. But what is not well known is that not all credit repair companies are created equal. Some are flat out liars and all they really care about is making money, not helping you with your problem.

What you will want to do is research any company you are going to do business with. Don’t rely on what they say. Of course any company is going to tell you how legitimate they are, how long they have been in business, how professional they are, but the truth is, anybody can say that, and those words mean nothing.

Continue reading ‘How to Repair Your Credit – Make Your Life Easier by Doing it Right From the Start’ »

Directors of limited companies may face bankruptcy if they have personally guaranteed the borrowings of the company. In a liquidation of a business, many creditors both secured and unsecured do not get their debts paid in full. Often the directors of the business have had to secure borrowings for the firm by providing their own assets as collateral. If the company cannot afford to repay the loans provided to it, or discharge an overdraft or invoice finance then the directors who agreed to pay those debts in the stead of the company will be called into do so.

It is my general experience that guarantees are often limited to set sums, for instance £25,000 or £50,000. Equally often a charge is taken over property of the director, usually a matrimonial home. These personal assets are at risk if the company debts cannot be re-paid. In rare occasions, where the loans are perceived as risky or maybe open ended in nature, unlimited guarantees may be obtained.

If the Personal Guarantee is called in the Director may be given some small time in which to arrange his affairs to pay off the debt. However, it is often the case that as the company folds so does any income that the director could earn to pay off the liability to the lender.

Continue reading ‘Directors Bankruptcy – Early Action Can Help Avoid Personal Insolvency’ »

When you bought your dream home several years ago, you may have taken out an adjustable rate mortgage, thinking you were doing the smart thing to get the best rate. You were probably right at the time; market conditions in the past were more favorable and those with an adjustable rate mortgage often saw their payments decrease in certain years. Unfortunately, the credit crunch is here, and the adjustable rate mortgage is causing more and more homeowners to lose their homes and destroy their credit rating.

Fluctuating Rates Means Instability For You

An adjustable rate mortgage has a rate that is adjusted at the beginning of each fiscal year (July). Using a formula that takes into consideration the fluctuations in the economy and in the housing sector, your lender will give you a rate that they have adjusted for these conditions, and that rate will apply until the following fiscal year, at which time it will be readjusted to suit current trends. A lot of folks are finding that the past few years have seen their payments of around $600 a month balloon up to $1100 or more. That is nearly double the amount that they had planned to pay when they signed on.

Obtain A Fixed Rate – Know What Your Payment Is

The best way to get rid of your adjustable rate and the uncertainty that it carries with it is to refinance. By refinancing, you can obtain a fixed rate that is more pleasant on your budget – assuring that you will not become one of the tens of thousands who have had their homes go into foreclosure because of their adjustable rate mortgage.

Continue reading ‘Adjustable Rate Mortgage – Refinance And Save’ »

When you bought your dream home several years ago, you may have taken out an adjustable rate mortgage, thinking you were doing the smart thing to get the best rate. You were probably right at the time; market conditions in the past were more favorable and those with an adjustable rate mortgage often saw their payments decrease in certain years. Unfortunately, the credit crunch is here, and the adjustable rate mortgage is causing more and more homeowners to lose their homes and destroy their credit rating.

Fluctuating Rates Means Instability For You

An adjustable rate mortgage has a rate that is adjusted at the beginning of each fiscal year (July). Using a formula that takes into consideration the fluctuations in the economy and in the housing sector, your lender will give you a rate that they have adjusted for these conditions, and that rate will apply until the following fiscal year, at which time it will be readjusted to suit current trends. A lot of folks are finding that the past few years have seen their payments of around $600 a month balloon up to $1100 or more. That is nearly double the amount that they had planned to pay when they signed on.

Obtain A Fixed Rate – Know What Your Payment Is

The best way to get rid of your adjustable rate and the uncertainty that it carries with it is to refinance. By refinancing, you can obtain a fixed rate that is more pleasant on your budget – assuring that you will not become one of the tens of thousands who have had their homes go into foreclosure because of their adjustable rate mortgage.

Continue reading ‘Adjustable Rate Mortgage – Refinance And Save’ »

Insolvency is an option that still appears to be a choice for buyers in debt. The 1st time you file for bankruptcy, you are facing a nearly year long process. Even with the known bad complications that come with clearing your debt by bankruptcy, the majority used it in previous years. Insolvency can be initiated by the creditors, however it is mostly done by the debtor to clear deep debt.

Continue reading ‘Business Bankruptcy- Helpful Tip For New York Bankruptcy’ »

Credit cards are fast becoming a business necessity. They’re flexible, easy to use, convenient and offer users the ability to make purchases instantly, anywhere in the world.

Continue reading ‘8 Reasons to Use a Business Credit Card’ »

Shooting in the dark never helps, so visit our website bankruptcyonly.com and go through bankruptcy with optimism. This is almost like half the battle won!

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A lot many people invest their last savings to set up a business. As a result to run the business and to bear future expenses they have to borrow credits. If their business crash and lose all hopes of redemption in future, they invariably fall into deadly debt traps. At this juncture, the last option left to them is filing for bankruptcy. The question that arises now is whether one can still run his business after declaring bankruptcy or not.

Continue reading ‘Can You Run Your Business After Declaring Bankruptcy?’ »

By the definition, a business loan is a certain sum of funds that is borrowed by an individual who wish to start or operate his own business. It is generally a type of personal loan, which is given by lenders to business owners. There are various kinds of small business loans. Unsecured business loans are initially issued by the lender based on your credit status alone without any type of collateral against the loan. Usually, you will require a high credit status and a very great credit history as well as you should have a stable personal finance condition.

There is even business financing that can initially be based on security such as real estate collateral, a vehicle or property that is hassle – free as well as clear of debt, and so forth. Then, there is one commercial real estate finance loan for that funds are granted for a commercial property that is to be utilized for business.

Continue reading ‘Small Business Loans – Enjoy The Benefits With Easy Funds’ »