For many college graduates having student loans is something that interferes with their business career for years, and in some cases, it’s difficult to secure financing when you have a student loan still being paid off. It can be pretty hard to get approval for a business loan when you still have the prospect of a long-term debt hanging over you in the form of a student loan. However, it is possible to overcome this situation and secure the funding you need, by following the right steps.
If you have multiple student loans, it will be greatly to your advantage to consolidate them into a single loan, and pay one interest rate. It should be fairly easy for you to find a lender who is willing to consolidate your student loans so that you end up paying less interest over the long haul. Hopefully, you’ll also end up paying your single, consolidated loan off faster than you would have paid off multiple loans.
Pay Off Your Student Loan Promptly
This may seem obvious, but it’s highly desirable to pay off your student loan quickly and in a timely fashion each month. You don’t want to have your credit score downgraded because of late payments or missed payments, and these will also show banks that you are unable to manage your existing debts. Keep in mind that personal debts and business debts will always have a certain degree of overlap, which means they will impact each other. This is especially true in the early stages of a business when your business has little or no history to go on. Any lender will take a much harder look at your personal financial situation in that case.
Find the Right Type of Loan
All small business loans are different, and some are harder to obtain, depending on how you intend to use them. There are many different types of business loans available, and you should make yourself aware of what all these types are. For instance, the best possible loan type for you may be one from the Small Business Administration, or it may be a loan offered specifically to minority business owners. If you have taken good care of your existing debts and paid them on time, it’s much more likely that you’ll be able to secure a business loan by applying for the right type of loan for your business.
Having Trouble Securing Needed Financing?
If your company is having trouble securing needed financing because of existing debt, we may be able to help. Contact us at GP Solutions to discuss some options for funding that you may be eligible for.