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Federal Tax Lien – Shutting off your line of credit or factoring agreement

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If the IRS files for a federal tax lien to be placed on your business, it can hurt your chances of securing a business loan, along with affecting any agreements or contracts you may currently have with lenders. Every lender wants assurance that they will get their money back, and your current lenders will be placed at the back of the line for repayments if the IRS places a lien on your business. This situation can affect a business the same way declaring bankruptcy would. 

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