Do you have student loans? Most Americans do; in fact, it is estimated that nearly 45 million people have student loan debt in this country. This debt could potentially be an obstacle for those that are looking for business funding or financing later-on, especially if you are in student loan arears.
So, how do you get business financing when you have student loans?
Pay Them Off
Make your payments as scheduled- or pay student loans off early. During periods where loans are deferred, such as pandemic relief, anything you pay will be put toward your principal balance. Keep paying and try to maintain a good payment history.
Improve your Credit
Speaking of credit history, this is the time to work on your own. You may still look appealing to lenders for business funding if you make your student loan payments and have a good history of paying your other bills and debts. Also, consider how much outstanding debt you have in relation to what you bring in. This is also something that prospective lenders will look at when you are being considered for business financing.
Consolidate Student Loans
Can you consolidate your student loans? This can lower payment amounts and interest rates, while also giving your fewer debtors to deal with. Make sure that debt consolidation does not interfere with any programs that you are involved with, such as some federal debt loan forgiveness programs.
Know your Options
Finally, there are many different types of financing options available; make it a point to familiarize yourself with various programs and loans. Finding the right loan or funding for your distinct needs may take some time- it can help to work with a business loan professional.
Want to learn more about funding and financial options available to you? Talk to the experts at Emerald Valley Financial Services and use these tips to ensure your student loans do not become a barrier for your business.