This applicant has applied for a debt consolidation relief loan for his small bistro that he operates in the Palm Springs California area. His situation is somewhat complicated in that he has made a personal loan of $175,000 to the bistro as an operating loan based on his application. As with all businesses, there are ups and downs in the business cycle which affects cash flow. It makes sense to have an operating loan for a business; however this one is complicated by the personal nature of the loans at this time.
The applicant has applied on behalf of the business, when really the business should be applying for the debt consolidation relief. If this relief were approved the restaurant would actually repay the owner all of the money loaned by the owner to the restaurant. Before any loan of any kind can be approved the lenders would want to review the audited statements for the business and they probably would want some sort of guarantees from the owner in terms of obligation to repay the loan.
A great deal of added discussion and information will need to be provided before any decision can be made regarding this debt consolidation relief loan. Financial statements need to be provided and documentation covering the personal loans that he has made to the business. Most debt consolidation relief loans concern credit card debt and other loans that need to be consolidated into one low interest loan. This loan application is for an owner of a business who really wants to obtain some of his personal money out of the business. This is a much more difficult kind of loan to review and approve based on the fact that the owners income is also dependent on this same restaurant. Further conversation will be required.