Lendinero's blog on Growing Your Business
How can business tax season help you obtain a small business loan for your business? Most businesses don’t know what lenders look for in corporate taxes. This article will help you know what lenders look for. First, if you have a co-owner and they have bad credit and own more than 30% of the corporation you will need to make some changes. Most business lenders will require that any business owner who owns more than 30% of the company needs to be on the application. If your partner has bad credit and they go on the application this will reduce your chances of getting approved or you may end up paying a high interest rate. You want to tell your accountant to issue a K-1 that distributes the profits or the losses to by less than 30% to your partner. This will increase your chances of getting a small business loan. Second, avoid reporting a lot of losses. Small business owners don’t like to pay excess taxes to the internal revenue service and you can enjoy a lot of benefits from the tax codes. Your accountant may save you a lot of money by paying less taxes. If you can try to break even and avoid reporting excess losses. These two simple strategies will help you during business tax season in getting a good business loan.
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