Credit protection

Harrison Funding Gets Bad Review for Commercial Debt consolidation loans for bad credit

Harrison Financing offers 3.03% APR loan deals that are just plain unrealistic unless you have great credit. Crixéo, the popular news and review site, did a review of Harrison Financing and still waiting to hear from someone who has been approved with such a low interest rate. Or is it just part of a long-lasting bait and switch scam?

According to Ed Miles of Crixeo, “The story is the same. Harrison Financing lures you in by sending you a direct mail with a “personalized invite code” and a low 3.03% APR to consolidate your high interest credit card debt into a new personal loan. You will be directed to the My Harrison Funding website. More than likely, you won’t qualify for any of their consolidation loans for bad credit"}” data-sheets-userformat=”{"2":8705,"3":{"1":0},"12":0,"16":10}”>consolidation loans for bad credit offers and they will try to turn you into a more expensive debt product.

Business owners, especially those with small businesses, often rely on credit cards to finance their growth and pay the bills. However, in tough economic times, paying off business credit card debt can become quite difficult. If you’re struggling to manage your credit card debt, it’s probably time to make some big adjustments to your business operations and financial management. This will give your business more stability to weather the recession and continue to be successful bad credit"}” data-sheets-userformat=”{"2":8705,"3":{"1":0},"12":0,"16":10}”>consolidation loans for bad credit

In this blog, we’ll cover all the essential things to know about business credit card debt and how you should manage it to keep your business financially stable and even get coronavirus credit relief.

Commercial debt is common practice

The very first thing you need to understand is that this type of debt is actually quite common. If you have a particular amount of business debt, you are not the only one. Business owners all over the world take loans from the bank or increase their credit card balance to pay for large expenses, investments for future growth, any shortfall in business cash flow, etc. .

A Small Business Credit Survey 2020 conducted by the Federal Reserve found that 68% of small businesses have debt of up to $ 100,000. Only 29% of businesses are debt free. This makes small business credit cards one of the most commonly used debt financing methods.

The survey also showed that 53% of these small businesses also use their credit cards for their daily transactions.

You shouldn’t feel bad about having business debt. This borrowed money allows you to increase the growth of your business and helps you manage the ups and downs of your daily cash flow. In addition, this debt will allow you to better manage your business finances and invest in future expansions.

However, if you often miss your trade debt payments or if your debt level gets too high, it’s time to make some adjustments.

Commercial debts are accompanied by a personal guarantee

Most small business owners start their businesses by obtaining a small business credit card. This gives them the capital they need to start their business. But, to qualify for this credit card, banks usually require business owners to give a personal guarantee. You will need to use your personal credit score to get a small business credit card.

This means that credit card problems can legally sue you to pay off your business debts personally. It applies even if you have corporate protection from an LLC or other legal business entity to protect your personal property.

The survey mentioned above also found that 88% of small businesses obtain financing based on the owner’s personal credit rating. While having a personal guarantee or using personal credit scores can help you qualify for a small business credit card, it also has its downsides. You will no longer be able to separate your personal finances and your business.

If your business suffers a loss or setback, rendering you unable to make repayments, you, as the owner, will be directly responsible for these debts. It might even cost you your own money, so be prepared for such circumstances.

Get out of commercial debt

Getting stuck in a cycle of debt, especially when your personal assets are at stake, can be disastrous for any business owner. Have you struggled to pay off debt or manage your business debt properly? Maybe your business is surviving for now, but you still feel the need for more stable finances. Either way, you should take these steps to get out of business debt as soon as possible.

1. Reduce your business expenses

See how much you spend each month on non-essential items. Maybe there is some unused office space that you can downsize or find a cheaper supplier for your inventory (without compromising on quality, of course). Try to find ways to reduce your total operating expenses per month.

2. Improve the profitability of your business

In the midst of tough economic times, you are in the best position to aggressively change your business operations in terms of better financial profitability. You may be able to eliminate some underperforming product or service lines that are not generating enough profit. Perhaps the prices of certain product lines can be increased, or packages offered to attract more customers. Make sure you maintain a healthy profit margin as you make these changes.

3. Increase your company’s cash reserves

A recession can be very beneficial for your business. First, it ensures that you pay minimal amounts on your business credit cards, loans, or lines of credit. Second, it gives you the perfect opportunity to increase your business’s cash reserves.

Try to delay major purchases or investments until you have at least a few months of cash in the bank. If you are contributing to the SEP-IRA or any other retirement savings plan, try not to add money to retirement investments and instead use it for your business cash reserves. This will make your business debts much more manageable.

In addition, having money on hand provides financial security and will lead you to make better financial decisions in times of uncertainty.

4. Get faster payments

Small business owners are often too forgiving when it comes to getting paid by their customers. Remember, it’s okay to ask your current customers for improved payment terms. If you offer 60-day terms on your invoices, try reducing it to 30 days.

Once you have a loyal following, they will be ready to pay you faster. You can further encourage faster payouts by offering small discounts or bonuses.

When you get paid faster, it improves your cash flow and increases your cash flow. Thus, you will have the money to pay off your trade debts and make future forecasts.

The last word

Recessions can sometimes be a perfect opportunity to change your business operations and improve your finances. Your customers will always want to spend money on your business, but how they want to spend that money can change. Always keep a close eye on customer behavior and make appropriate changes to the business to accommodate them.

Finally, if your business continues to suffer from revenue not rebounding, it may be time to take more drastic action. You may want to consider options such as debt settlement or bankruptcy to protect your rights and start from scratch.


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