Are you struggling to pay your SBA loan? Are you unsure about what to do next?
If you're facing this dilemma, you're not alone. Half of all small businesses struggle financially and often fold in the first five years.
But it doesn't have to be this way. A simple loan deferment could help you get back on track and save your business.
Here's what you need to know about an SBA loan deferment.
Bankruptcy Isn't the Only Option
Accumulating too much debt early on can be a huge problem for a small business. Falling into debt you can't pay can lead to mountains of interest that only compounds the problem.
When you're on the verge of losing your business, it's scary. You may be tempted to file bankruptcy to end the debt and the worrying.
However, you should avoid bankruptcy if at all possible. Declaring bankruptcy often doesn't make sense for a small business and will make it hard to get any future business loans.
Before you choose bankruptcy, you should know there are debt relief options that can help you manage your debt and keep your business running.
Your SBA Loan
The current pandemic has affected small business owners everywhere. Although some small businesses were able to rebound quickly, others have struggled.
Although private financial institutions provide SBA loans, they are backed by the Federal government through the SBA. This means SBA loans are secure loans that require collateral.
If you default, the lender has a right to recover what you owe. That could put your collateral, including your primary residence, business assets, car, etc. at risk.
Consulting an SBA Debt Attorney
Eliminating your small business debt is crucial for getting your business moving in the right direction. You need financial relief so you can focus on running your business.
An experienced SBA debt attorney understands the stress you may be dealing with right now. They know that eliminating your debt is the first step toward financial freedom.
An SBA attorney may be able to negotiate for a sizable reduction in your small business debt, including a reduction in principal. For many business owners, a more manageable debt makes all the difference.
With the right guidance, you may be able to avoid bankruptcy and eliminate or greatly reduce your debt.
An Experienced Negotiator
The role of an SBA attorney is to help you restructure your business debt and get the relief you need so you can focus on running your business. It's important to have a professional guiding you through this process.
Many debt relief companies claim they can help you resolve your debt problems but are unable to fulfill this promise. Having an experienced SBA attorney working for you ensures you have the best chance for debt relief.
A skilled negotiator knows how to deal with creditors, work to protect your rights, and get the best deal possible for you. Your SBA attorney will keep all your financial dealings confidential.
This ensures that your financial issues will remain private and will not disrupt your company's reputation.
The SBA Debt Settlement Process
Your attorney will work with your creditors to negotiate a lesser debt on your behalf. Creditors are more likely to offer a better deal when you have an attorney representing you.
An SBA attorney is familiar with collection laws and what a creditor can and cannot do when attempting to collect a debt. They will communicate directly with your creditors and will instruct them to stop contacting you.
If you are facing an SBA loan default, don't settle for bankruptcy.
Instead, hire a reputable SBA attorney to help you with the process of SBA debt settlement.
Before any litigation occurs, it's possible to enter into settlement negotiations with your lender for a deferment or other workout of the loan. A deferment provides you with some breathing room and enables you to get your business on the right track before paying your monthly loan commitment.
The terms of a deferment can vary as will the "catch up" provisions.
Every case is different. It's in your best interest to have an SBA attorney by your side every step of the way.
Avoid Doing Nothing
When you're faced with an SBA loan default, the worst thing to do is bury your head in the sand. The sooner you begin seeking a loan deferment, the better.
The worst case scenario most often results in the lender filing a lawsuit.
For this reason, the sooner you address the problem and begin working with an SBA attorney, the better.
Starting the SBA Loan Deferment Process
Don't wait until it's too late to save your business. Start the SBA loan deferment process right away.
The experienced legal team of Protect Law Group provides real solutions for individuals facing SBA loan problems. We're here to help. Contact us today for a case evaluation.