How to Get an SBA Loan with a Tax Lien or Judgement | NBC Advisor


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How to Get an SBA Loan with a Tax Lien or Judgement

Tax liens and judgements are automatic disqualifiers when it comes to SBA loan approval from banks and traditional lenders. Even those with the incredible FICO scores, stellar sales and many years in business get turned away fast at the mere mention of them.

Fortunately, National Business Capital has come up with a solution for small business owners to quickly and easily wipe away any tax liens or judgements, and get the SBA financing they need.

man gets sba loan with a tax lien and judgement

Can You Get an SBA Loan with a Tax Lien or Judgement?

Traditional SBA lenders do not approve business owners with tax liens or judgements for SBA loans.

However, alternative SBA providers like National Business Capital approve business owners with these issues for SBA financing every day, through their Hybridge SBA Loan Program – a new SBA financing product that banks and SBA lenders cannot provide.

The Hybridge SBA Loan is unique in being the only funding program that both removes tax liens and judgements from financial records, and supplies business owners with the SBA loans faster and easier than any other lender on the market.

How to Get SBA Approved With Tax Liens & Judgments

Step 1.

First, apply for a small business loan or business line of credit, which you will obtain in 24 hours through NBC’s expedited funding process.

Step 2.

Use these funds to pay off your tax lien and/or judgement.

This immediate capital injection can also be used to supply your business with the cash flow it needs for any immediate uses while you wait for your expedited SBA loan.

Step 3.

Apply for your SBA loan. Through NBC’s expedited SBA process that eliminates paperwork and wait times, business owners typically receive SBA funds as soon as 45 days after applying.

Step 4.

Use your SBA funds to pay off your initial small business loan.

Now that your initial capital injection helped you pay for any short-term goals and challenges that needed immediate attention, your SBA loan will help you with long term funding.

Using your SBA loan to pay off your initial small business loan ensures that you no longer have to pay off the initial capital left over out of your own pocket.

What’s more, doing so ensures that you borrow only as much SBA funds as you need, lowering your cost of capital long term.

Many business owners apply for SBA loans without considering the possibility of borrowing ‘too much.’ This can leave business owners paying off funds they didn’t need to borrow well into the future.

“So You’re Saying I Should Borrow Capital…
…to Borrow More Capital?”

AND pay off your tax liens and judgements without breaking the bank, lower your cost of capital, speed up your time to SBA funding dramatically, and save countless time and money by utilizing the Hybridge SBA Loan process – YES!

I know what you’re thinking. It sounds like you’re borrowing more, and saving less. Bear with me, and I’ll show you why the opposite is true!

If you have a tax lien or judgement on your record, it’s most likely because you don’t have the funds to pay them off yet.

In these cases, business owners are presented with two choices: pay them off with borrowed money, or waiting until your business has the cash flow to support wiping away your tax lien or judgement, without taking away from operational expenses.

Using your own capital to pay off your tax liens or judgement can cause massive cash flow interruptions, and wind up costing you enormous amounts of revenue in the process. You know this, or else you would have used your own funds already, right?

So instead of paying out of pocket, or borrowing funds you don’t need, utilize the only SBA program on the market specialized to help business owners with blemishes on their financial histories – and save time and money at the same time!

How to Apply for SBA Loans with Tax Liens and Judgments

First, you need to qualify. Here’s what NBC requires for SBA approval:

  • 2 or More Years in Business
  • Make at Least $100K in Annual Gross Sales
  • Have a FICO Score of at Least 685

If your business meets all these requirements, then all you have to do is apply online by filling out this 1-minute application.

Or, you can call (877) 482-3008 for more information, and to ask how we can start helping you remove your tax liens and judgements necessary to get your expedited SBA loan.

What if Your Business Doesn’t Qualify for an SBA Loan?

Sometimes, financial circumstances or short operating histories bar business owners from getting SBA loans, even through alternative lenders with more lenient qualification requirements. However, that doesn’t mean you’re out of luck if your business isn’t approved. Other funding options can make it possible to pay off your debts, get back on your feet and start working toward business growth.

National Business Capital and Services offers several loan programs for which you may be able to qualify regardless of credit score or current debt, including:

  • Accounts receivable financing
  • Business line of credit
  • Equipment financing
  • Merchant cash advance
  • Short-term business loans

A business financing advisor can help you choose the best option for your business based on your needs, financial standing and the types of expenses you’re looking to cover.

Taking out a different type of loan can increase your chances of qualifying for an SBA loan in the future. How? Making payments on time improves your credit score, and using the money from the loan to pay off debts and invest strategically in your business gives you a stronger financial picture to show to lenders. Funding also helps you avoid more serious problems, such as defaulting on current debts and having your assets seized because you can’t meet payment obligations.

As you consider an alternative option, be mindful of terms and rates. Financial trouble can make it more difficult to qualify for low-cost funding, but the team at National will work to find the most favorable loan structure for your business.

Last Updated on November 26, 2018

National Business Capital helps entrepreneurs secure quick and fair financing to save time and cultivate sustainable growth.

Our stress-free online platform is designed for simplicity and speed, helping business owners go from application to approval in a matter of hours. And while we remain a leader in the Fintech industry, our clients agree it’s our personalized service and award-winning team that sets us apart.

From SBA loans to lines of credit, to equipment financing, and more, business owners can access all the different financing programs available to them in one place. Through our streamlined process, we have helped clients secure $2 billion in financing since 2007, and, more importantly, we’ve helped entrepreneurs save a tremendous amount of time and grow faster.

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.