How To Find A Good Tax Debt Loan
Do you need help with paying your business tax debts? A good tax debt loan can help. But, finding an easy-to-pay, low-interest business loan to pay out tax debts is not easy. Here are tips on how to find the best tax debt loan in Australia.
Check your business and personal credit score
Carrying such a substantial debt load is a definite turn-off for lenders. A poor credit score could mean a huge debt load which has a serious impact on the lender’s decision on whether to approve your loan or not. Your debt level should not exceed 30% of your available credit limit if you want to maintain a good credit standing.
Equifax and other reporting agencies consider the utilisation rate and the total amount of debt owed, in gauging your credit risk. So, if the percentage at which you are using your available credit in your credit card and line of credit is high, it means total utilisation rate is high too. In such a case, it is advisable to do two things: check your credit file for errors and correct them by directly filing a complaint with the reporting bureau or the reporting agency itself. Second, look for a lending institution that offers tax debt loans for people and businesses with low credit score.
On the other hand, good credit score could indicate that you have a low level of debt, you are using debt responsibly and you are definitely a low-credit risk.
By checking your credit file, you will have an opportunity to check some errors in your report. You can also hire a credit repair company to go through the detail-oriented credit repair process that ensures you will have every opportunity to clean up your credit and increase your score.
Organise your business tax loan before you go loan shopping
Choosing a credit product is not easy. You have to compare the interest rates. Make sure that the lenders inform you of the grand total, and not just the interest rate during the initial stage or promo period. Check if there are fees and charges and compare them with other tax debt loans.
If you want to borrow a small tax debt loan amount (below $5000), banks and traditional credit providers may not be willing to lend you a personal loan. Others will grant your personal loan application in exchange of high interest rates and fees. You can avoid high-cost credit by making no-credit check enquiries at various financing companies offering personal loans or tax debt loans.
Is it wise to pay off my tax debt with my credit card?
Using credit card to pay bills has its own pros and cons. It is convenient because you don’t have to apply for a new loan. But, if you will use it habitually to pay off your debts, including your taxes, it can send you into a spiral of debt because of high interests.
In short, credit card is handy, you can make a cash advance or use it to pay your taxes directly, but it is advisable to use it only when there are no other less expensive options available.
But, always remember that the interest rates of credit cards are comparatively higher than short term personal loans. You may have to pay 22% or more on you cash advance instead of 15% or less APR. If you compare the interests, tax debt loans may be relatively cheaper than credit card rates.
Look for a lender that looks beyond your credit score
There are some reputable lenders that lend money to people and businesses with low credit score. Choose a lending company that allows you to make a no-credit check enquiry that will not be reflected in the credit report.
For example, Business Loans gives you a greater leeway in how your application is to be considered, despite your bad credit score. It has lenient standards and competitive interest rates compared to mainstream lenders.
Why Choose Business Loans for your business tax debt loan
Business Loans is the company every entrepreneur with tax debts should turn to, especially if mainstream lenders turn you down. We are a team of passionate in-house loan experts with vast knowledge and expertise in debt management and you can trust that we will give you the most appropriate loan product for your specific needs. You can ask us about the most convenient payment terms, based on your financial circumstances. Only that, you have to be honest in telling us about your financial situation.
Each borrower has specific financing needs that must be carefully addressed by loan officers. Some people can pay outright while others need time to gain traction, especially if they have just started in their business. Inform our in-house loan experts about your condition so that we can find the best loan products and loan terms that will make it easy for you to repay on time.
Contact Business Loans today to learn more about our tax debt loan solution.