Business owners who fail to pay their taxes on time must negotiate a payment plan with the Internal Revenue Service (IRS). Otherwise, they will be imposed a tax lien. The latter is a public document to assert the government’s right to seize your business property and sell it so to pay your tax debts.
Operating Under a Tax Lien
Very often, it is extremely difficult to secure a business loan if you have a tax lien. The latter can cause huge damages to your company’s business credit. Even if you want to sell your business, you can face major difficulties along the road. The thing is that in such cases you need to have an approval from the IRS.
The good news is that even though getting approved for a business loan with a lien is rather challenging, in fact, it is doable. All you need is take your time to find the right lender who will not refuse to lend you the necessary funds for your business.
Unlike traditional banks and most processors, there are online lenders who are willing to work with prospective borrowers with tax liens. Usually, these companies require borrowers to have a repayment plan with the Internal Revenue Service. Also, the terms of the plan shouldn’t be heavy enough for the borrower to be able to pay back the new loan.
With a reputable payment processor like firstamericanmerchant.com (FAM), merchants can be sure to have their business loan approved. Tax liens and bad credit histories are not a problem for First American merchant. FAM offer low-cost and highly secure business funding options, a First American Merchant Cash Advance included.
Getting a Business Loan with a Tax Lien
It is a common knowledge that traditional business banks and lenders will not extend credit until you tax lien is resolved. Fortunately, the situation is not hopeless: you can turn to alternative lenders to get the best for your business needs. Business owners with tax liens should just follow the following steps in order to succeed in obtaining business funding for their companies:
- Make your payment plan approved immediately
- Once approved, make your payments on a regular basis
- Bring down your tax lien amount as much as possible
- Consider various financing options and make sure to apply to a reputable lender
- Benefit from federal laws by requesting to have a lien removed from your credit report even before it is fully paid
- Be realistic even if you are going to pay more for your new loan as this is a good deal in fact
It won’t be easy to find a small business lender who will want to work with you under a tax lien. However, this doesn’t mean it’s practically impossible. Take the right steps, carefully research and choose the right lender, weigh out your options, and make the right decision for you and your company.