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Frequently your credit history is why you are rejected for a loan. In case you are viewed as a risk, and your credit history indicates that with prior lenders you time after time made late payments or skipped payments or defaulted on a business loan, it may affect your score and might result in your being rejected for the business loan.
What else can I help you with?
What kind of loan do you need to purchase a piece of a small business?
You may either apply for a small business loan or a personal loan. Google small business loans
You haven't paid your loan in years?
There are a number of reasons a person may not have paid their loan in years. They may not have the money to pay a loan for example.
Can you sell a business to your spouse to qualify for a minority business loan?
You can sell your business to your spouse and if she is a minority, then she may be eligible for a minority business loan. You must ask the loan officer if the person has to be the owner for a certain amount of time before they qualify for the loan.
When a co signer on a business loan dies is the estate responsible or is the other business owner liable for paying the loan?
It depends on how the business and the loan are titled. If the business is a partnership, the business may be responsible for paying the loan. If the borrowers signed as individuals the surviving signer may be able to make a claim against the estate. You should consult with an attorney who can review the loan and any business documents and explain your responsibilities and options.
Can a new business owner cosign for a loan in his business name and what effect will it have if the borrower defaults on the loan?
Cosigning for a loan is dangerous to do. A true business loan should be under a business name itself, a personal guantee may be required in some situations. To build business credit search for a mentoring service online.
Can the interest charged on your loan principal be deducted for tax purposes?
It varies on the jurisdiction under which the loan was taken out and the purpose of the loan. Generally speaking, if a loan is taken out to benefit a business, the business can claim the interest on that loan as a business expense and offset it against income. A loan taken out for personal reasons, however, does not fit that profile. Interest on a loan taken out for personal reasons, and interest on credit cards, which are basically the same thing, are not tax deductible. In the United States of America, interest you pay on the mortgage of your principal residence could be written off against income. That may not be true any longer. If you have any questions about this, I strongly recommend consulting the tax code of your country, or a competent tax lawyer.
How difficult is it to get a loan as a sole proprietor?
It may be challenging to get a loan but a loan will be dependent on having a good business plan. If you have a well thought out business plan and proposal, you will have a better chance of getting a loan. The amount will also have a lot to do with whether you can get your loan or not.
Why is a loan a liability for a bank?
The person or business may not pay the loan back and the bank has to take the loss
Where online can I apply for a loan?
If you have been turned away from banks for a loan it is important to understand specifically why you have been rejected, and you should look into that first. Sallie Mae though is a quality loan institution that will may provide a loan for your college education based on your FAFSA results.
Can you obtain a business loan after personal bankruptcy?
A personal bankruptcy can remain on your credit history for up to 10 years, which can make it difficult to get a business loan; however, if your business credit is established as a completely separate entity from your personal credit, you may increase your likelihood of getting a business loan.
What Would Be Considered Collateral For A Business Loan?
The exceptional form of collateral is real estate. If you own your home you may be required to use it to get the business loan. Real estate situated outside the U.S. cannot be used. Business resources, properties, autos, inventory and whatever is purchased with loan proceeds can also be used to secure the business loan.
A personal business letter may be written by?
A college student inquiring about a loan.
