How to turnaround your failing small business & stop
SBA loan default
If you are like many small businesses, you eventually hit a financial
roadblock. It may be because of the economy or because your customer's
needs have changed. But while you are struggling to survive, you
are not only dealing with cash flow problems but also facing SBA
loan default. If this is your case, you are not alone. Hundreds of
thousands of small businesses all over the country apply for and
get new SBA financing every year. And the majority of these will
go out of business during their first five years. Facing SBA loan
default is common.
So what should you do about it? Should you just default and not
pay back your loan? After all, the SBA or Small Business Administration
financially backs up all SBA loans through the bank. The bank stands
to lose nothing, so why should they pursue you?
The
3 vital factors you must know before filing for business bankruptcy
Credit card holders struggling 05 Bankruptcy Reform Act has passed: Credit card holders struggling with options as minimum payments set to double
DTS Financial explains bankruptcy alternatives that consumers should be aware of.
Moorpark, CAOctober 1, 2005-- Credit card debt is crippling the nation’s economy. With the new bankruptcy law having been passed and the minimum credit card payment expected to double, consumers now have very few options when dealing with their mounting debt, according to Alex Viecco, Vice President and co-founder of DTS Financial Group, Inc.
During the latter part of the fourth quarter, most credit card lenders are expected to act in accordance with the standards set down by the Office of the Comptroller of the Currency (OCC). Most lenders are expected to double the minimum payment from 2% of the balance to 4% of the balance. The new standards require credit lenders to apply more of payment sent in towards the principal. The good news surrounding this is that fewer consumers will fall behind on their debt payments in the future; the bad news is that in the interim, consumers that cannot pay any more will be forced to file for bankruptcy. "We want the public to know that there are viable alternatives other than filing for bankruptcy,” states Viecco. Listed below are the five options:
1.Ignore the problem and hope things get better. This is obviously the least effective and can only compound the problem.
2.Debt Consolidation loans. Not everyone owns a home in order to tap into the equity. Also, most of the lenders are going to charge high interest rates due to the consumer’s current financial state.
3.Credit Counseling. These firms negotiate with the credit lenders on the interest only. This industry is backed by the credit card companies.
4.Bankruptcy. This was an alternative that many chose but with the passing of the Bankruptcy Reform Act, it is no longer a possibility for many consumers.
5.Debt Settlement. This is the quickest route to eliminating consumer debt. This option usually results in settlements that significantly lower the original balance and there is no bankruptcy judgment on consumer’s records after completion.
About DTS Financial
DTS Financial Group, Inc. (www.DTSfinancial.com) provides consumers a solution to credit card debt through their Debt Settlement Program. Based in Moorpark, Calif., DTS Financial is a member of the BBB, has more than 2000 clients nationwide, and has settled more than $20 million worth of consumer debt.
Contact:
Keith Baldwin
DTS Financial
http://www.DTSfinancial.com
888-632-3328
About the author:
Keith Baldwin
DTS Financial
www.DTSfinancial.com
Circulated by Article Emporium
The
3 vital factors you must know before filing for business bankruptcy
How to buy a home after bankruptcy or foreclosu...
If you've been looking for a home and you have bad credit, you may not have had the best of luck finding financing. If banks have denied you financing for a home loan and you're starting to wonder if its possible, dont lose hope, youre merely looking in the wrong places. Bad credit doesn't mean that you cant get a loan to buy a home. It only means that your interest rate will be a little higher than if you had good credit. Most traditional banks might turn you down with low credit scores, p. . .
|