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Business Debt/Credit card debt to start a business

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Expert: - 4/16/2009


Question
Hello, we are an S-corp shareholder to a LLC franchise that we bough in 8/07. The company is now breaking even and we will have four more franchises open this year. The problem is we have $145k in credit card debt in our names that we used to buy into the business. The rates are all over 15% and payments are killing us. The business is going well and we have a lot of cash in the bank to put toward these new businesses that will open this year. It is the company's money that is owned by 4 equal partners. Is there any kind of government program or business loan that can offer us a lower interest rate than what we have now? We are a company that is only going in the positive direction, yet my husband & I are personally drowning in making these high interest rate credit card payments. Our credit scores are in the high 600's to low 700's and we haven't ever missed any payments.  Thank you for any help or suggestions!

Answer
Dear Sara:
Thank you for your question. I understand your plight, and to the best of my knowledge there are no programs available for business debt with the exception of an SBA loan. That said, you may be able to go back to your creditors and ask them to lower your rates as you are good payers and have the cash to continue servicing your debts.  You might also be able to go to a local credit union and inquire about their products as they generally offer lower rates on credit cards, lines and loans. You as a women business owner may be able to get some assistance by way of women business groups, to help you streamline your business model and other expenses to make more available for debt paydown. Do your homework and shopping on available consolidation products with reputable and established lenders.I hope this helps.

Respectfully,

Christine Janklow

Business Debt

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Christine Janklow

Expertise

As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.

Experience

My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.

Organizations
Provisors;Turnaround Management Association; Los Angeles area

Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."

Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising

Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.

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