Small business loans are loans that are taken out in order to help get a business started. In a few instances, an entrepreneur or investor may have enough funds to start a business on their own. However, in many cases, a person starting a small business may need to take out a small business loan to help get their operations up and running.
What Are Small Business Loan Conflicts?
Legal conflicts can sometimes occur in connection with small business loans. Like any other type of loan, there can be disputes between parties. In most cases, these disputes occur between the borrower and the lender. However, other parties can sometimes be involved in a loan dispute, such as insurance companies, government entities, and other parties.
Some examples of small business loan conflicts include:
- Disputes over loan amounts, payment plans, and interest rates
- Defaults on loan payments
- Breach of loan contract terms
- Loan fraud
- Other issues that can affect loans such as bankruptcy filings
Loan conflicts often result in a civil lawsuit. Remedies may include a monetary damages award to compensate the non-breaching party for any financial losses stemming from a violation.
Are There Any Other Financing Options Besides Loans?
Loans are just one aspect of financing a small business. Funding for small business operations can sometimes come from other sources. In particular, many government and private entities are willing to issue grants to small businesses. These are monetary amounts that are donated to the small business.
In most cases, there are “strings attached” to grant money. For instance, a donor may issue a grant to a small business under the condition that they use the grant money in order to research a specific environmental issue. However, the good thing about grants is that the recipient generally does not have to pay them back so long as they follow what ever conditions are attached to the grant.
Do I Need a Lawyer for Help with Small Business Loan Conflicts?
Loan arrangements can often involve some complex terms and conditions. You may need to hire a business lawyer if you need help negotiating or reviewing loan contract terms for your small business loan. A qualified lawyer can help with these tasks to ensure that your business rights and interests are being protected. Also, in the event that you need to file a legal claim or go to court, your attorney can provide you with representation during those proceedings.