# Equipment Financing with tax liens?



## DemoGuy (Feb 2, 2013)

Ok Guys, don't laugh!

I am a veteran contractor and I'm a victim of the recent economic recession. For a period of 3 years my finances turned to shambles. The IRS has filed tax liens against me, the liens remain on my credit report until they are paid in full, which I still have a ways to go before the IRS is paid off completely.

Business is now better than ever. 2012 was the best year I've ever had in the last 22 years I've been in business.

I need a tracked skid steer. Either a decent used one or new. We have been renting one to the tune of $2000 to $2800 per month. I have not applied for credit, but I doubt I'd be approved with the liens showing.

Does anyone know of any equipment finance companies that will finance someone with tax liens? I can come up with a down payment. Other than my payments to the IRS, my only other debt is my mortgage. I have no credit cards, no loans.

I know I can't be the only contractor with this issue.

Anyone have any experiences?


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## cexcavation (Apr 17, 2008)

The one thing I know is that it is better to owe the bank than it is the IRS. Hindsight 20/20, but you would have been better off to borrow money and pay of the IRS and you would have built your credit rating assuming you could pay the loan. The IRS charges ridiculous interest and they don't play by the same rules. I had one year where taxes snuck up on me. I borrowed money on a Credit Card at 0% and paid it off within the alotted 3mos for the 0% interest. That would be my advice at this point......pay off the IRS and build your credit at the same time. Other than than, buy a brand new one from the dealer as they don't really care as long as they move machines...worst case they get it back and move it again.


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## tgeb (Feb 9, 2006)

I agree with the above.

Do what ever you can to get the lien cleared.

Are you on a payment plan with the IRS? 

All you can do is apply for the financing and see what happens, you might get the note, you might have to pay a little higher interest rate, you never know til you check.


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## Gary H (Dec 10, 2008)

Your tax leins will always show up on your credit report. Even when you have them paid off in full. A red flag.


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## DemoGuy (Feb 2, 2013)

There is a payment plan with the IRS. All that is taken care of.

And correct, the liens appear on credit report for a long time. After they're paid - they do come off, and if they don't come off, a lender will probably want to see proof (such as a letter) showing they're paid. 

There have to be others out there that are in this situation. I'm just wondering if anyone knows of any lenders that are willing to work with such issues. Business is better than ever, sometimes good things come out of bad  I'll talk with JD and Tak and see if we can make anything happen.

If anyone has any success stories to getting financing, I'd like to hear. Many on the web dont want to air their dirty laundry, so does this forum have a PM feature?



On a side note (for those owing the IRS): The IRS has 10 years to collect for the calander year owed. If they don't collect in ten years then the liens are released. And liens come off the credit report. However the revenue officer has the option of renewing the liens, which I'm told they seldom do.


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## DemoGuy (Feb 2, 2013)

Or, the other option is to file Chapter 13. The liens are then wiped completely. but you have a Ch 13 on your credit report. However, as long as you make the bankruptcy payments, I've heard that credit scores quickly climb rather high in 1 year.


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## Morning Wood (Jan 12, 2008)

What about a local bank that is familiar with your business.


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## response02 (Feb 8, 2013)

I believe the fact with the above.
Do what ever you can to get the mortgage eliminated.
Are you on a repayment strategy with the IRS?
All you can do is implement for the funding and see what happens, you might get the observe, you might have to pay a little greater attention amount, you never know til you examine.


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## rino1494 (Jan 31, 2006)

Never been in that situation but I am sure that if you went to a dealer and showed them signed contracts they would work with you.

Is there any way to liquidate old equipment to help pay off the liens ?

BTW....... I just typed in Heavy Equipment financing in google and a bunch of results came up.


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## Metro M & L (Jun 3, 2009)

I didn't think you could declare bankruptcy on tax debts and student loans. Chapter 13 I'm not very familiar with though.


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