Why Bad Credit Doesn’t Need To Stop You From Getting A Business Loan
When you run your own business you meet many challenges along the way. Unfortunately, this can often result in having a poor or bad credit score. You may feel that this is going to be a major obstacle in allowing you to get a business loan but this doesn’t need to be the case. Granted, it may pose a few challenges, however, the secret is knowing how to overcome them and make yourself attractive to potential lenders. Some people may google the term “bad credit business loan“, and that actually may be how you ended up on this page! Allow us to tell you about a few factors that are going to come into play when you are looking for a bad business credit business loan and what you need to do about them.
Understand What Your Business Credit Score Is Made Up Of
It’s hard to improve something if you don’t know what it is actually made up of. So how is your credit score generated? In general, there are a number of elements that all come together, these include how long you have been in business, what business credit you have applied for and your payment history to credit accounts you have or have had.
Can you see how these factors can go in your favor, even if you have had credit issues in the past? For instance, a brand new business may not have poor payment history on their account but that is because they simply do not have any payment history. This lack of information could give them a weak score, whereas a business that has run into some troubles but has many years in the business and plenty of payment history could come up in a much better light.
Using A Business Credit Card To Improve Your Score
When you know you have had business credit but also know that for your business to thrive or survive you need a business loan, it is crucial for you to take a proactive approach. There is no point in sitting back and hoping that in time your score will improve.
One way that you can work to improve your business credit is with the use of a business credit card. However, it’s not just getting approved for the credit card that is going to be the key player, you need to know how to use it to your financial advantage.
Firstly, make sure that you actually use it. Simply, having it in your business name is not enough to make an impact. Secondly, keep the credit utilization ratio low in comparison to the credit limit you have been approved to have. Finally, and crucially, make sure that you make all of you payments on time. You will likely be surprised to see how quickly this one action, when carried out and maintained correctly, can have a positive impact on bad business credit.
Credit Repair Options
Most people have heard of credit repair for personal credit but did not know that it is also possible to repair business credit with some of the same techniques. Bad business credit is not a death sentence! Neal Business Funding has credit repair programs that can fix, change, correct and delete the information that is harming your business credit score. Your score can fluctuate for many reasons and you need a consistent stable credit score to get the best rates possible.
Know Who To Turn To For Your Business Loan
As well as taking measures to build up your business credit you also need to know who to turn to for your business loan. Do not presume that just because some of the local bank lenders have turned you down that everyone will. Often online lenders or other reputable, yet less common, lenders understand the ins and outs of bad business credit and are happy to work with clients to provide them with a business loan which is realistic for them. Such lenders may also be able to analyze a company’s current situation and help them to see exactly what they need to do to make themselves a viable option. If this sounds like the type of partner you want to work along with then Neal Business Funding could indeed be the right people for you to turn to.
Neal Business Funding has funding options that work with all credit situations. Our loan consultants can talk with you and find the loan that is suitable for your businesses needs. Call now at 315-699-4703 or fill out our contact form and we will reach out to you within 24 hours.