“I Have Tax Liens on My Business. How Am I Supposed to Repay It?!”
When you’ve fallen behind on your taxes, one tactic the IRS likes to employ is placing a lien on your property. What’s a lien? Think of it as a hold — depending on the specific lien, it could prevent you from selling your business or changing ownership until your debt’s paid off. But the IRS’ plan of attack can have unintended consequences for small business owners that put them in an unfair situation. The restrictions placed on them by the government can make conducting business impossible, which in turn means they can’t generate the money to repay them.
“Couldn’t I Just Take Out a Loan?”
When you can’t afford to operate your business normally, your first thought may be to borrow the money you need from a bank. But because of the danger of the IRS seizing the business and therefore losing their investment, banks are very unlikely to lend to a business with tax liens. So without new money coming in and unable to get funding from the bank, many small businesses wind up closing down shop (in some cases, as high as 90%). But shouldn’t there be another way?
Pay Off Your Tax Lien With a Merchant Cash Advance
Principis Capital understands the difficulties of small business owners with bad credit, especially when it comes to back taxes. That’s why we specialize in providing working capital for businesses regardless of their credit history, even when other institutions have turned them down. So how can you get a merchant cash advance? Here’s an easy step-by-step guide:
- Set Up a Payment Plan With the IRS
Before we begin, you need to make sure you have set up a payment plan with the IRS to chart out your repayment. For some merchants, this might be enough to balance their finances. However, if the IRS is levying your accounts, a merchant cash advance from Principis can allow you to make your payments.
- Complete Our Simple 1-Page Application
Get pre-approved instantly by filling out the application on the right. Most of our merchants receive their money within 7 days!