By: Charlie Chambers, Lead Consultant, Small Business Development Center
Working with small businesses since the recovery from the last recession I have noticed a disturbing trend. A number of small businesses have come to me seeking assistance that have made some serious mistakes that are really hard to overcome. One of the issues I see a lot is past due taxes. Both federal and State income tax and local property taxes. Business owners are surprised and disappointed to learn the banks and credit unions have little or no interest in loaning money to an individual that owes these back taxes. Think about it: If the business owner was unable to pay a tax liability, what makes the business owner think someone else will take the risk of not getting paid back?
If an individual has these issues, the business owner must get an approved payment plan from the governmental agency (i.e. IRS, State or local tax department) and demonstrate at least one year of prompt payments on those plans along with paying all current year taxes before consideration of any type of loan. In addition, the loan must be secured by assets. Rebuilding a credit score takes time. Be patient, but doggedly consistent with all payment.
The Small Business Development Center (SBDC) provides no-cost one-on-one counseling centered around the business planning process, including financing, market research, marketing strategies, management and cash flow analysis. To learn more and schedule your no-cost consulting appointment visit: http://www.toledochamber.com/small-business-development-center.html
The Small Business Development Center (SBDC) provides no-cost one-on-one counseling centered around the business planning process, including financing, market research, marketing strategies, management and cash flow analysis. To learn more and schedule your no-cost consulting appointment visit: http://www.toledochamber.com/small-business-development-center.html
 | Charlie Chambers is a Certified Public Accountant and a Global Certified Management Account. Charlie was employed at Owens Corning for 28 years before striking out on his own and has worked as CFO or Controller at a number of area companies. Charlie now serves as the Lead Financial Consultant for the SBDC and has a passion for helping small businesses to grow. |
The Small Business Development Center (SBDC) program of Ohio is funded in part through a Cooperative Agreement with the U.S. Small Business Administration. The SBDC is also funded in part by the Ohio Development Services Agency. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.
Please contact Emily Dammeyer, Communications Manager, Toledo Regional Chamber of Commerce, to submit a story for our blog.
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