I have a business with a lot of potential.
I also have an SBA loan. In hindsight, getting this loan with out truley understanding the restrictions may have been my worst business decision.
I have a business partner who left the company less than a year after aquiring the loan. The partner has not been working for 4 years and has not payed the loan or contributed anything to the business since, yet still owns 50% of the business.
The problem? Neither the SBA or Bank will let me take over the full the loan and own the business outright. This loan has been paid by me every month on time. This SBA loan is killing my business because:
#1st since it is an SBA loan, I cannot sell receivables in order to generate cash flow through the use of factorors, etc.
#2 I cannot get additional financing such as a line of credit, with a benign partner on the loan.
#3 The suggestions offered by the bank are not viable options.
Have the partner pay down the debt. - Partner has no money
Have someone take over her portion of the dept - who would?
Refinance loan with another bank - maybe possible but because we have been straped for so long trying to hold it together with out additional financing, the company does not show enough profit. May be difficult and new interest rates may be a huge detriment.
This may be possible but very difficult
Get an investor - May be possible, but the investor must understand a branded product driven design business. Definatly possible but I am not sure we will be able to hold out long enough to find one.
#4 Neither the SBA or my bank wants to discuss helping, understanding or listening to how my business operated to see how financing will substantially increase business, sales and ultimatly profits.
MY Options:
Get the partner to go bankrupt, so the I am the only one they have left on the loan.
Default the loan and re-open as a new business: I do not want this to be an option but is almost the only one which seem like it might work.
Further ruining my credit will not help me get needed financing. How ever I would be able to sell the receivables.
Really at a loss here, any suggestions?
I also have an SBA loan. In hindsight, getting this loan with out truley understanding the restrictions may have been my worst business decision.
I have a business partner who left the company less than a year after aquiring the loan. The partner has not been working for 4 years and has not payed the loan or contributed anything to the business since, yet still owns 50% of the business.
The problem? Neither the SBA or Bank will let me take over the full the loan and own the business outright. This loan has been paid by me every month on time. This SBA loan is killing my business because:
#1st since it is an SBA loan, I cannot sell receivables in order to generate cash flow through the use of factorors, etc.
#2 I cannot get additional financing such as a line of credit, with a benign partner on the loan.
#3 The suggestions offered by the bank are not viable options.
Have the partner pay down the debt. - Partner has no money
Have someone take over her portion of the dept - who would?
Refinance loan with another bank - maybe possible but because we have been straped for so long trying to hold it together with out additional financing, the company does not show enough profit. May be difficult and new interest rates may be a huge detriment.
This may be possible but very difficult
Get an investor - May be possible, but the investor must understand a branded product driven design business. Definatly possible but I am not sure we will be able to hold out long enough to find one.
#4 Neither the SBA or my bank wants to discuss helping, understanding or listening to how my business operated to see how financing will substantially increase business, sales and ultimatly profits.
MY Options:
Get the partner to go bankrupt, so the I am the only one they have left on the loan.
Default the loan and re-open as a new business: I do not want this to be an option but is almost the only one which seem like it might work.
Further ruining my credit will not help me get needed financing. How ever I would be able to sell the receivables.
Really at a loss here, any suggestions?
