Student loans can affect your life in many ways. From your credit score, to affording a car or home, and even starting a business, student loans can cripple your financial capabilities for years. While small businesses are the bread-and-butter of most communities, the lack of financial capabilities for student loan holders can damage their chances of successfully operating a business. While their business decisions may not be bad, other factors come into play when it comes to successfully operating a business.
One of the biggest comes from business funding. While folks with good credit can get a bank loan, this is not the choice for those with student loans. Even with a good credit score, a student loan look bad on a credit report. One missed or late payment can dramatically reduce your score, and cause your interest rates to jump. Instead of turning to the bank to look for a loan, you instead need to look for an ACH business loan.
An ACH business loan is not a typical loan. Payments are arranged between the merchant and the ACH lender, and payments are taken from the merchant account. Every business needs a merchant account to process payments, and if you do not have one, your ACH lender can either provide one for you, or recommend a reliable processor. Payment amounts are also arranged between the merchant and the ACH lender, and are typically not a flat-rate payment, but rather by a percentage. This helps companies that are new or struggling from going into debt just to make a loan payment. Before signing on with an ACH lender, you need to make sure that they are a good fit for your company. Not all ACH lenders work well with all types of business, so be sure to interview the lender before signing on the dotted line.
Student loans can impact any aspects of your life, but few consider the impact it has on a small business. 99% of all businesses are considered “small businesses”, and nearly 60% of all new jobs come from small businesses. Just because you have a student loan does not mean that you cannot find funding for your business.