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Exactly what is a Loan Default?...
and how bad is it?

Loan Default black sign

How a loan default can be the beginning
of the end for your business.

In this article, we'll help you understand what a loan default

technically is, exactly the process, and road to default,

and how it affects your next 10 years. 

The beginning road

 When finances get tight, something has got to give. There's

no more money, no more credit, no options but to not pay

something. Obviously our natural human priorities lay out

in this order.

Pay for in order:

1. Food

2. Water bill

3. Electricity

4. Rent/Mortgage

5. Nat Gas

6. Car Gas

7. Personal grooming items, like tooth paste, deodorant, etc.

8. Clothes/shoes you absolutely need now.

9. Car payment

10. Car insurance.

 After these, credit bills are next. Credit cards are usually the first to suffer, and should be if you have a business loan or loans...because they affect your ability to borrow large amounts quickly to keep your business making income,

by inventory purchase, payroll, etc.

 After you miss a payment, and you know you will miss the next one, call your lender and try to negotiate a loan mod.

Some lenders will be grateful and happily comply.

Some won't. It's as simple as that.

 Upon your 3rd missed payment, unless you call that moment

and let them ACH out newly deposited money, it goes to 

default. The lender files a UCC lien, and you are now paying

default fees of $2,500 per loan--to ever pay it off.

The default goes on your SSN record for 10 years, you can not

erase it by changing your EIN, nor business name,

nor address. We see this sneaky yet fruitless tactic all the time.

 Once you default:

- 99% of all business lenders will decline you.

-You are banned from obtaining SBA loans for 10 years.

-You are considered worse than having a Bankruptcy, as you

can't file that again for 10 years.

-93% of all businesses that default on a business loan will be

out of business very soon. 

The only good news

 The only good news about a default is that A1 Financial USA

is in that 1% of lenders that can fund you. We must warn you the rate will be high, the term will be low. Don't even think

you can negotiate that to your favor. Getting an offer after

a default is a favor made to you, not the other way around.

The 1% of lenders are just playing the numbers, taking a huge

risk. They earn the high rate for the risk. Sometimes, however,

we can offer a "Tranche Build" loan, where you start out small,

and after half paid off, we can ratchet up more money to you.

Yes, A1 Financial USA funds defaults...but if you pay off the old

default first, you triple your chances of receiving quite a bit better offer than if you do not. We know bad things happen

to good people, Covid was a lot of bad happening to a lot of

good payers. We take that into account. We're always willing

to help when there is a need, if possible.

Past default? Apply today here.

Afterwards>Email us the details of the default.

Always be honest about it. We value honesty highly.


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