5 Ways To Get Out Of Cash Advances And Other Bad Business Loans

Cash advances and other bad business loans can suck the lifeblood out of your company. Many business owners end up with two or more, all at high interest rates. The payments crush any hope of profit and also your confidence. They can often drain 10% or more of your monthly revenues.

It makes sense to do whatever it takes to get out from under your cash advance and other bad business loans. Here are 5 ways to transition to more viable financial arrangements.

Switch to a Low-Rate Term Loan

Is your credit good? Try a long-term loan with monthly payments. These have affordable interest rates, reducing your payments significantly. You will still need to pay the entire amount of your merchant cash advance, but you will have a more reasonable loan your business can live with.

Go with a High-Rate Monthly Payment Loan

If you credit isn’t so good, see if you qualify for a high-rate loan. This isn’t ideal because you still have a high interest to content with. But you will know the interest rate and your payments can be stretched over a long period, even up to 10 years. These have no pre-payment penalties so if you can pay if off early, you can still save dramatically.

Investigate Asset-Backed Loans

Do you own trucks, real estate, heavy machinery or similar types of assets? Use these to get a collateralized loan. But it’s important to remember that you can lose the assets if you can’t make payments, so take than into consideration.

Get Help from a Negotiator

Renegotiate your business debt by hiring a debt restructuring company. The negotiators don’t make money until they show results and arrange a lower amount for you.

File for Bankruptcy

If all else fails, file for bankruptcy. Before you make this serious decision, be sure to talk to your lawyer or a professional qualified to advise you.

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