There is no other way to put it. We all have to pay taxes every April. This year, there are talks of the tax season being pushed back due to the disease outbreak. Even though the government is trying to help businesses mitigate possible losses, taxes need to be paid sooner or later.
Many small businesses run on thin margins, and a couple of unexpectedly slow months can put your business at risk. We understand that, and that is why we designed a program specifically for a situation like that. No more need to pile up cash before the tax season! You can get a competitive business loan to help you cover the tax payment and scatter the amount over the next few months.
Why Should You Pay Business Tax on Time?
IRS charges interest on outstanding tax balance
The IRS treats the outstanding (underpaid) tax balance as a loan. That means that you will pay between 4 and 6 percent in interest charges, in case your corporate taxes aren’t completely covered.
Using an appropriate business loan will save you the trouble of dealing with the IRS later in the year, and (unlike the IRS), you would be eligible for a write-off in the coming year.
In addition to the accrued interest, the IRS imposes on late payments. There are steep penalties that you may have to pay in addition to the interest charges. Many sources online suggest that companies should seek a business loan a few months prior to tax season so that they have emergency access to money.
Our article outlines various sources of working capital loans that you may consider depending on the amount you need, available resources, and timing.
More punishments from the IRS
As we mentioned earlier, any outstanding tax balance would be treated as a loan. Besides all other penalties, the IRS can issue a tax lien on your business or even personal taxes and claim them in place of the missing amount.
As an extra spoke in your wheel, tax liens usually have a quite severe impact on your credit history. It can drive down your business and personal credit, making it harder to secure beneficial credit in the future.
What can you do?
Fortunately, our Unsecured Working Capital Program is one great way to help you do business with confidence this Spring! Unsecured money is the easiest to get and poses zero risks to your company’s assets.
You can get the funds on the next business day! That means no sleepless night on April 14th, guaranteed.