By: ysalas
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This Month’s Actionable Item: Don’t Stack Your Loan

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Do you qualify for a
small business loan?

We know there’s an abundance of EASY MONEY being offered to small business owners. You probably have been called several times by brokers trying to “sell you a loan” you can cash immediately. We advise against taking out multiple business loans within the first 6 months of closing your loan with Camino Financial.

We understand that it takes “money to make money” but the reason we advise you against “loan stacking” is because we don’t want you to overstrain your business or household with debt payments. When we approved you for a loan, we approved the max monthly loan payments you can make with minimal risk of default. We calculated this amount by reviewing your monthly “global cash flows.”

Here are some non-debt alternatives you should consider to address cash flow issues in your business:

– Start forecasting your cash flows for 12 months. Click HERE to download a template and a watch a tutorial video

– Take a close look at your financials to see if you can change your prices or costs. Don’t know where to start? Watch this short WEBINAR to get started.

– Contact your major suppliers to see if you can renegotiate better terms.

– Pay all your bills on time to avoid late fees.

– Renegotiate terms with your customers (sometimes you just have to ask for the payment sooner).

 

Frequently Ask Questions on the Topic

What is loan stacking?

In other words, it means taking “stacking” multiple loans.  Taking out multiple unsecured loans or cash advances to address cash shortfalls.  Increasing your monthly debt payments without consulting Camino Financial can be very dangerous and can result in putting your business at risk of default.

What are my global cash flows?

Global cash flows add your net business cash flows and other household income, less fixed personal obligations (e.g. housing rent, car payments, and personal debt payments).

What if I didn’t get approved for the loan amount I requested?

We approved you for a lower amount because your global cash flows were less than the monthly payments for the requested loan amount.  The loan amount we approved ensured your global cash flows exceeded the monthly payments.

What if I have an opportunity to take on a contract that will increase my revenues?

Give us a call. As your financial partner, we want to help you think about the impact the contract will have on your operations, people and cash flows.

Do you qualify for a
small business loan?