More about Liens, business and personal!
More About Liens
A lien is a legal recorded claim against a property. The claim encumbers the property as a means to collect money owed. As we mentioned before, there are various types of liens, such as voluntary ones like a house mortgage or a car loan or other equipment loans in which the property is held against the loan amount. There is also the lien against property invoked by the IRS when your taxes are in arrears, and this can tie up property indefinitely, until the IRS is paid in full. An IRS lien takes precedence over all other liens and will be the first to be paid off.
Another very common lien is one that is levied by a company when you don’t pay for work done on your property. These can be in the form of contractors’ liens, mechanics’ liens or construction liens because these are all professional in nature. Some states require that you be notified before a lien is placed on your property. Other states don’t have this requirement, and a lien can be filed without your knowledge. This can present problems when requesting a loan and being unaware of an encumbrance on your possessions.
Other types of liens include HOA, divorce and liens brought against you by creditors for unpaid debts. These can include credit card debt, defaulted bank loans and repossessed vehicles. In some cases you can be forced to sell property to pay off the debt.
When an established company needs capital, a bank loan comes to mind first. Banks want to lend to companies that have a clear record of profitable operations and a good FICO score, that generate a cash flow sufficient to repay the loan, and that have enough collateral or assets to secure the loan. If personal or business property is tied up in any sort of lien, there are no assets with which to secure the loan.
Unfortunately, in this bad economy, most businesses do not have the stellar credit scores to garner a traditional loan, and need to find alternate sources for their funding needs. Liberty Capital Group has a variety of programs to deal with business financing needs, be it Working Capital Loans, Equipment Leasing and Financing or Business Cash Advances, we have a program to suit your requirements. We approve loans without personal guarantees, even if you have a tax lien or are on a repayment plan of up to $175k. Our loans are based on gross sales, whether you take credit cards or not, and we fund with credit card scores as low as 500+.
If you are having a problem obtaining a loan because of liens or any other reason, contact our Financial Specialists today @ www.libertycapitalgroup.com
Your business success is our goal!