Started a new business with the government to help veterans stay in their own home in 2008 After tens years this looks like our first failed payroll. We have 2 business loans to help pay our business expense but that has added to our problem since we have to delay payment to them.
Any suggestions on how to continue without timely payment from the government this year? We might have to close our doors since the government is in control and severely stalls on payment for services.
I’ll need more information to help answer your question. “Business Loan” is just too broad a category; so let’s narrow it down.
But before we start let’s look at one big question:
1) If the terms of the loans were different [i.e. lower monthly payments], would you be profitable and be able to stay in business?
Maybe you know the answer right off the bat but if you need help figuring it out, talk with a Small Business Development Center [SBDC] near you. SBDC’s offer free high-quality business counseling. They are typically located on college campuses and are staffed by professional business counselors. You can find your closest location here.
Ok, onto the questions about your specific loans [without sharing personal information or bank names]:
2) What is the amount [ how much do you owe], approximate interest or APR, length [or term] and the monthly payment of each loan?
3) About how long have you had the loans?
4) What type of loans are they? Examples would be Line of credit, SBA, receivables purchase, cash advance [MCA] and/or a business term loan [from a known bank or credit union].
5) Are any of the loans a daily or weekly withdrawal?
6) Do you a have other business debts like Vendors, Credit cards or equipment?
Answer those questions in the comments section below and we’re off to a good start.