Debt Problems

I have a lot of credit card debt close to $50000 from my business. What are some ways to clean this up?

My business is still in the growth stage but we have racked up debt close to $50000 that is sitting on my personal credit cards. Should I transfer that debt to a large credit line under my company name? Will that alleviate the stress on my personal credit debt? or will that not matter because it is still my corporation? Any assistance with this matter is appreciated. I only hope to clear these debts sooner than later..Thanks

Public Comments

1. Pay it!
2. Get the debt over to the company and away from your personal credit at once.
3. The intricacies of the financial debts can be very complicated. Seek the free of counseling debt consolidation services to see and hear your options and all the options available to you. There are many debt consolidation programs open to you.So get professional financial advice first then decide.
4. There are several banks advertising to transfer existing credit card accounts to their organisation at low interest rates for the first 6 months. Why don't you take a chance on this as you have indicated you will be able to pay this off sooner rather than later?
5. Unless you company is publicly traded, you will not be able to move the debt. Your company debt is your debt. I see this often when I arrange loans. The real question is "How do I borrow more. while I am in debt?' The short answer is simply this: Your business needs to start making money and paying down debt. Failing that, you are in trouble. I wish you luck. I've been there. Not a good place to be.
6. You're in a world of hurt. Get competent financial counseling immediately. Doubt you'll be able to transfer the debt to your corporation without a personal guaranty on your part. Time to make a plan for retiring this debt before it takes you down.
7. You need to collect the accounts receivable that your business has in this "growth stage" to pay down your business debt. If you don't have any meaningful accounts receivable to collect or "factor", then what you have my friend, is an expensive hobby.
8. There are better ways than debt consolidation/ credit counseling or bankruptcy. You have to close the cards – it only works on unsecured debt – but there is a faster way. Please send me an email - I may be able to help you.
9. A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business. However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are. When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own. Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information. Good luck, Ilya Bodner Small Business Owner Initial Underwriting Group