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Megan C
Megan C , Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16539
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I own a business. And I work full time for another company,

Resolved Question:

I own a business. And I work full time for another company, making a strong salary. The business is growing so fast and has such demand that it has become very challenging meeting the obligations for the business. I employ my husband and the business makes enough profit basically to provide my husband a salary equal to mine. We want to apply for a small business loan the end of next year to expand, but if I were to choose to leave my full time day job would this decrease our chances of loan approval. Company 100% owned by me. LLC. We intend to apply for an SBA Patriots loan. Strong personal credit profile. Biz will be in business just over 3 years at loan application time. Again not asking for approval probability, just f I quit my day job to focus fully on the business could that hurt our loan approval chances.
Submitted: 2 years ago.
Category: Finance
Expert:  Megan C replied 2 years ago.

Megan C :

Thank you for your question, and thanks for using JustAnswer.com

Megan C :

If you were to quit your day job, that income would no longer be able to be considered for the loan. Therefore you would inherently decrease your chance for getting a loan.

Megan C :

However, if you wanted to you could keep your day job until after your loan was funded, and then quit. IT doesn't matter, the main thing is that you can meet your loan obligations and live off the money that the business makes.

Customer:

Ok. Thank you. That was the original plan, but we're growing so fast it's starting to hurt the business that I cannot commit more time to it. We're doing nearly 500K annually in revenue so we bring in plenty to pay loan obligations, but just wanted gain any insight to see, if I had to make the choice to leave my full time job, so customers would not suffer, if that would have a dramatic impact, or just a slight impact, if our business profile was strong. Company is really strong and growing very fast. Revenue doubling every year. Most folks that start a business do not have such a great safety net to fall back on, and I'm not a huge entrepreneur, and keep wondering if I'm just not taking the plunge I should.

Megan C :

If the business is strong, and you can easily afford the loan payments it would be a slight disadvantage but not a dealbreaker

Megan C and 3 other Finance Specialists are ready to help you
Expert:  Megan C replied 2 years ago.
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