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Very often when you are considering going into business, or expanding your business, your credit history will count.

Not only your business credit is taken into account, but also your personal credit history will be looked at when determining your creditworthiness for a small business loan.

Even if your business credit has been exemplary, you may still see your business credit loan application denied in deference to your personal credit history.

For those who are seeking to build a business, or to expand an existing one, you need to review your personal credit history as well as that of your business.

If you have a credit score on your personal credit that is lower than 620 -650, you may still be able to get small business loans for bad credit, but it will take some effort on your part.

You can obtain small business loans for bad credit. You should know ahead of time, and understand that they will quite possibly cost a lot more in interest rates than if your personal credit score were a little higher.

Taking steps to change your personal credit score may make thousands of dollars of difference to you in the long range.

If waiting a little while to boost your credit score isn’t an option to you, then there are a few tips that you can use to help you to get a loan while your credit is still mediocre to poor.

Transferring Your Business-For those who have a partner or have a person who would be willing, who is also trustworthy, an ownership transfer may be a way to go. You may have a family member or a partner who will be willing to accept ownership of the company who has a better credit rating than you do.

Transferring ownership of your company to this person would be one way to assure that you got the small business loan that you want and could make the changes or the expansion that you need.

In some cases, after the loan is approved, you may transfer the ownership of the company back to the original owner, however, many lending companies do not provide for any transfer of ownership so long as the loan is valid.

Find out what your lending institution provides for before you attempt to use this method of a small business loan for bad credit.

SubPrime, or Bad Credit Lending Institutions-If you like and are willing to pay a higher interest rate, very often you can secure a small business loan for bad credit using a sub-prime lender.

This type of lender will be a great deal more easy to work with when it comes to those who do not have perfect credit. Bear in mind that the interest rates you will be paying may run between 14 and 20 percent so they won’t be cheap options.

If you’re a business who really needs the cash in hand as soon as possible, they are a viable option to get it if you’re in immediate need. As soon as your credit rating improves, refinancing will be the best option, since they don’t offer you a long term pretty picture for  you or for your business.

Secured Small Business Loans-just as you may expect from this, the secured small business loan is a way to get what you need, but you have to offer up some type of security for the loan. Typically, this will be your business holding, but it may be another form of collateral, such as a family home.

Very Small Business

Many owners are not willing to offer this type of collateral, but the bank or lending company will see it as faith in your business and look at you much more favorably with regard to approving your loan.

If you’ve been turned down to receive small business loans for bad credit reasons, you’re not out of options just yet.

Consider one or more of the options that are listed above and see what you can find to help you through your financial crunch.

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