My Credit Cards Are Maxed Out From My Business

Steve RhodeAsk a Question credit card debt, deep in debt No Comments

Q: I have 80,000 in credit card debt from my small business. I am behind on payments and struggling to keep up. They’re four cards maxed out, no cash to purchase inventory. Not sure what to do? Consolidation loans semm to be a scam? Any advice on what to do?

Kristan

A: It seems like the real issue is the business is not generating enough money to properly care for itself. If the $80K was borrowed to pay for previous inventory and the revenue from those sales was spent then the business is not sustainable like that.

If you are already behind and you have personally guaranteed this debt then the chance of getting a legit and expeditious business loan are slim. The fastest legit lending source I have seen is the peer-to-peer lending network LendingClub.com. Otherwise, an SBA loan is going to need to review your finances and take three to six months.

Now is the time to evaluate if your business is sustainable at all. You may also have to consider that the debt hole you’ve been digging is so deep that even if things turn around it will be too deep to dig yourself out of.