How to Obtain a Business Loan with a Bad Credit History
March 13, 2018
Brown Mark (73 articles)

How to Obtain a Business Loan with a Bad Credit History

We all have a credit record, and this is built up over the years with a person’s involvement in financing purchases. The financial world is very much tied to credit history, as this is the only way for a lender to assess the borrower, and it is oh so easy to fall foul of the system, which can seriously affect your ability to acquire a loan. A couple of late payments is all it takes to have a negative recording on your credit history, or it might be a dispute with a retailer that results in you ceasing to make payments, and many people do not realise that situations such as this can seriously affect your ability to acquire a loan in the future.

Online Solutions

In former times, when a person wished to borrow money for business reasons, they would have to approach their local bank, and should that person have a bad credit history, the result is almost always a refusal. This does seem a little harsh, and for many budding entrepreneurs, the inability to get business funding nips their project in the bud, so to speak. A new business has no financial history, which means the lender will assess the business owner’s personal credit history, and there are financial institutions that are able to process bad credit for business loans, and furthermore, approval can come through within minutes.

Sourcing the Right Lender

This is not as difficult as you might think, and with a refined Google search, you can make contact with a finance company that specialises in business start-up loans for people with a less than perfect credit score, and after entering the required information into the online form, you can receive provisional loan approval within a few minutes. Fortunately, there are lenders that are prepared to give people a second chance, and if you have a great business idea but your credit history has been marred, there are still possibilities to fund your new venture, and it costs nothing more than a few minutes to find out.

Case By Case Assessment

Every business is unique, and if a finance company applies stringent rules across the board, this can mean that a borrower’s loan application might be refused, but there are forward thinking lenders who do not wish to penalise a person unjustly, therefore, every application is viewed as a separate entity and based on its own merit. An online search will give you a list of potential lenders and with a little browsing, you should find one that accepts applications from those who have a less than ideal credit history. It might be that a few invoices took a long time to clear, or possible a dispute with a supplier, and such things should not be the deciding factor when a lender assesses a business loan application.

Online solutions make it possible for a new business owner to quickly determine if they qualify for a business loan, and regardless of the past, there are lenders who are prepared to assist new businesses in their quest for start up funding.

Brown Mark

Brown Mark