Can You Get a Business Loan After a Tax Lien?

A tax lien makes funding harder, but it is not always a dead end. Some funders will work with an active lien if your revenue is strong and you have a plan to address it.

How funders view a tax lien

A lien signals unpaid taxes and gives the government a claim on your assets, which makes funders cautious because it can sit ahead of their repayment. Traditional banks usually decline outright, while alternative and revenue-based funders may still consider you.

What they want to see is that the business is healthy now and that the lien is being managed rather than ignored.

What improves your odds

Funders look more favorably on an applicant who:

• Has an active IRS or state payment plan in place
• Shows strong, consistent monthly revenue
• Can document the lien amount and its status
• Has avoided new negative marks since the lien

Options that may still be available

Revenue-based financing and merchant cash advances are the most likely to work with a lien on file, because they underwrite off deposits. Some funders will even structure funding to help clear the lien. Equipment financing and factoring can also be possible depending on the situation.

Terms will reflect the added risk, so comparing offers is especially important here.

Get the lien on record and shop widely

Being upfront about the lien and showing a payment arrangement reassures underwriters far more than hoping it goes unnoticed. Gather your documentation before you apply.

The Broker Shop knows which of its the right funders consider applicants with liens and lets them compete for your file. Checking your options is free and won't affect your credit score. For the tax side of resolving a lien, ask a tax professional.