Do you already have a business loan out? Do you need to take another loan out for your business?
The answer is yes! You can take a loan out for a business if already in debt. If you’ve taken on debt, but need to borrow more money in order to keep the business running – you can definitely take another loan for your business. Often, many business owners need funding – but are afraid of taking it, or they think they can’t take on more funding. The answer is, yes, you can definitely take another loan for your business.
Are there limits on how many business loans you can take?
Technically, no. Usually you can have as many business loans as you want. Typically business loans “cap out,” based on a fixed $ amount. For example, you can have numerous SBA loans up to $5 million. You could have 1 loan for $5 million, or 10 loans for $500,000 each. It all depends on how close you are to the limit of the loans.
Merchant cash advances
Often, many people who take merchant cash advances take subsequent merchant cash advances. They can keep taking more merchant cash advances/business loans, as many as needed. Even if they’re already in existing merchant cash advance debt, they can keep borrowing more and more money.
Typically merchant cash advance lenders will keep lending you money up to 25% of your withhold (25% of your daily balance).
The general rule is that there is no limit on how many business loans you can get, if already in debt. You are limited on how much you can borrow as an overall limit (in the case of SBA loans), or overall relative to your revenue.
Should you keep borrowing?
It really depends. You should continue to borrow money if you really need it to run your business and grow it. Often, many business owners are trigger shy, and don’t borrow money when they need it. They wait too long, usually when their business is about to go “out of business,” and by that time the money is too late. Typically, you should borrow money fast – whenever you need it.
How can Delancey Street help you if you’re already in debt
Delancey Street is able to help business owners in a number of ways.
We can help you consolidate your existing business loans into a new, combined, payment. For example, we can help you get an SBA loan. That means, we can help you get a new SBA loan – which can pay off your existing debt. The SBA loan we help you get is the smart way to scale your business because SBA loans have a monthly payment, low APR rate, and great long terms. This means greater daily cash flow for your business, and it means you can now re-invest into your business.
We can also help you get additional capital, via invoice factoring. For example, if your clients take 30-90 days to pay their invoices, we can do invoice factoring to help you grow. By offering you invoice factoring, we’re able to help you get funds immediately on the face value of your invoices. Invoice factoring is a great way to unlock the value of your invoices.
If you have existing merchant cash advances, we can help you consolidate all of them into one new payment. Often, many merchant cash advances are high interest short term financing instruments. If you take several of them at once, it can totally harm your business. What we do is buy out your existing high interest merchant cash advance loans, and give you one new weekly payment. This new payment will have a longer term, which means you have increased greater cash flow
We offer new loans
If you’ve already got an SBA loan, term loan, line of credit, or some other financing option THATS OK! We can give you a new loan. Regardless of what you’ve got, we can help you.
Get a hard money loan
Did you know that even if you’re already in debt, a hard money loan can be a GREAT way to escape that debt with a cost-effective solution? Hard money loans are great. If you have real estate, you can get a real estate collateralized loan – with 8-10% APR, with only INTEREST MONTHLY payments. That means you only pay payments on the interest, and don’t have to make payments on the principal until the end of the loan. Often, many business owners forget that their biggest asset is their real estate asset. You can get a real estate collateralized loan, at a very low rate, and use the funds from that to help you get more business funding even if you have an existing business loan.