For most business owners, hearing that they got approved for a business loan is a godsend. It’s the kind of news that makes them jump for joy when they first hear about the approval. However, as great as the news starts, this very news can quickly turn into an entrepreneur’s worst nightmare if their business doesn’t fare well.
Unfortunately, not all businesses succeed in their endeavors. In fact, as many as 95% of all businesses fail within the first 5 years. The problem is that a business loan usually takes a lot more than 5 years. In fact, many loans are for as long as 10 years or more. What ends up happening is that these business owners are left on the hook.
Without a functioning business to help fund the loan repayment, business owners often end up working 2 or 3 jobs just to try to gain enough money to pay off the loans. In some cases, they simply don’t have enough work hours in the week to actually come up with a feasible way to repay the loans that they had taken out. In a lot of cases, they don’t have a way to repay it and have to file for bankruptcy.
But wait! There’s one small problem with business loans that banks dole out. In order to get a business loan, the vast majority of business owners have to put up something for collateral. The most common thing for collateral people tend to offer is their home. When people can no longer afford to pay for their business loans, banks jump at the chance to take people’s homes. The worst part about it is that this is all 100% legal - and that the homes in question are often worth more than the loan
Banks will never tell you about this issue - ever. They won’t tell you how many people are now homeless because of a business loan gone bad. But, it happens more often than you think. If this scares you, you’ll be happy to know that there is a good alternative out there for you to consider.
If you get a cash advance, you never need to put down collateral. If you don’t make money, you don’t need to pay, either. Sounds much nicer, doesn’t it? That’s why business owners should call CPS, and ask for a cash advance consultation. After all, your home should never be on the line when you’re trying to become successful.