It’s not the end of the world, although, it just might feel that way. If you have a tax lien against you and you need money for your business, loan institutions are going to look heavily on that lien.
Are you paying on it
Before a loan institution decides whether to help you or not, they will look into your finances, and if you have been paying on the lien, or not. So, make sure that you have made arrangements and you are making regularly scheduled payments.
If it is a Federal tax lien, they are less likely to help you out. BUT, again, if you have made arrangements and are following through with those arrangements, your history will speak for itself. The Federal lien will come first above all other creditors and they make sure that is known.
State tax lien
The state tax commission is not as intrusive as the Federal Government, but don’t underestimate them. They have just as much right as the Federal Government when it comes to their taxes. They are quicker to go after them, and they expect arrangements quickly and expeditiously.
If you have made arrangements, and are working with them regularly, then it shows excellent habits and can shine a bright star on your loan application status.
There is help
There are companies that will help you in this time of need and all you have to do is find them. Not a lot of them want to go up against any tax commission, but some are willing to stretch their pocket books and assist you.
A good Google search will lead you in the right direction.
Have you checked with Friends and Family?
The first logical place to begin is with friends and family. They know what you are up against. They might know someone or they may have a rainy day fund that they might dip into for a small concession. Maybe make them a silent partner and come up with a date for repayment or they get a percentage for a year or two for repayment. If you have someone like this, make them feel comfortable to work with you. And most of all put it in writing. Words can be forgotten, even on a handshake, but if it’s written down and notarized, then it’s almost as good as stone.
The point is
Taxes are first in line to get paid over everything else. So, looking for a business loan won’t be easy. It’s not impossible and you may have to be more creative than you have ever been before. Some leg work is going to be required, whether it’s online research or pounding the pavement looking for help. Take the time you need looking for the money, and be prepared to have other options when one idea does not happen. When researching this article, the tax commission of both kinds has made things difficult at best, to reach for assistance. Good luck in your quest.