I recently received a request from veteran contractors who indicated they were victims of the recent economic recession.
For a period of 3 years their finances turned to shambles. The IRS filed tax liens against them. The liens remain on their credit reports until they are paid in full. They had no way to get traditional bank funding before the IRS was paid off completely.
The first contractor needed a tracked skid steer. Either a decent used one or new. He was renting one to the tune of $2000 to $2800 per month. He did not apply for credit, and he doubt if he’d be approved with the liens showing.
He asked me, “Do you know anyone of any equipment finance companies that will finance someone with tax liens?”
He told me he could come up with a down payment. Other than his payments to the IRS, his only other debt was his mortgage. He had no credit cards, no loans. He said, “I know I can’t be the only contractor with this issue.” He got a deal that took into consideration his company’s strengths rather than its weaknesses.
Shortly thereafter an electrical contractor with Tax Liens needed a loan. He told me about his business challenges and got an Affordable Business Loan from a premier alternative financing company that specializes in bad credit business loans. He got a deal that took into consideration the company’s strengths rather than its weaknesses.
Without the financing, these contractors would have turned work away because their projects need a large outlay of cash to start.
The recession has caused many construction industry companies to seek funding companies that are more generous with credit terms to grow and expand their businesses.
The recession has caused many construction companies to be concerned about employee payroll and keeping employees working because of lack of funding for new projects.
Like many businesses in the country; the Great Recession force contractors to make the hard choice on laying off employees because of the lack of work; inability to meet tax obligations; cash flow; and keeping the doors open.
“The Great Recession took a financial toll on many small businesses, and many are still reeling from the effects of it even today,” said Terry Robinson, Founder and CEO of Sunovis Financial.
“A company that has a less than stellar credit record does not necessarily mean that they are high risk. The downturn in the economy forced many companies to downsize, lay off employees and often the owner would forgo a paycheck to make sure his existing employees were paid,” said Terry.
Terry goes on to say, “Sunovis Financial is an advocate for those companies that were battered during this economic storm. We look for more important factors, as opposed to just a credit score to make a “common sense” decision on lending money.”
“The other more important factors include:
- Cash Flow
- Time In Business
- Type of Business
- Social Strength Indicators and much more
These are important factors that banks often look past. “
Banks are still not lending because of a restrictive regulatory environment. This lack of lending sends ripples across the economy. The small business owner is the engine for job creation in this country, and if they cannot secure the financing to expand, people seeking work will have a hard time finding a job.
Mitchell Weiss, professor of finance for the Barney School of Business and former owner of several commercial finance companies, says, “The banks are conflicted. On the one hand, they need to make more loans because they have more deposits, which are liabilities on the lender’s balance sheet. Then, they have receivables, which are assets. However, they’re also still wary about what took place a few years back.”
Terry goes on to say, Sunovis Financial has been leading the way in creative bad credit business loans for companies with a healthy cash flow. Their customers include:
Health and Dental practices
Restaurant and Franchisees
Online companies and many more
Terry says, their Premier small business loans are affordable with business-friendly rates; require no guarantee, no collateral and no prepayment penalty. They are the experts in bad credit business loans.”
We hope you enjoyed reading this article. For more information about contractor fudning contact me. Contact me at 415-678-9965 or email me at email@example.com for more information.
These contractors now claim that business is now better than ever. This year is the best year they have ever had in the last 20+ years they were in business.
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