Bad Credit Business Loans
Bad Credit Business Loans With a Lower Interest Rate
What are some tips that can help me get a small business loan with bad credit?
Applying for a business loan with ‘poor’ or ‘bad’ credit is challenging. Still, many alternative and traditional lenders offer Bad Credit Business Loans, so small business owners have adequate money to manage their businesses.
Following loan for business bad credit options come are available to the small business owners who are struggling with the bad credit score at the top of the head.
1. Merchant Cash Advance
2. Business Lines of Credit
3. Short-term loans
4. Invoice and Equipment Financing
The eligibility criteria for these business loans are relaxed. Lenders offer lower interest rates to business owners with ‘the fair’ credit score than the businesses with a fair credit score.
While assessing the borrower’s application, other than credit score, lenders look at the other factors. Usually, those factors called as five C’s:
1. Capacity
The lender assesses the debt-to-income ratio of the borrower.
2. Capital
The lender assesses the working capital and incoming cash flow of the borrower.
3. Credit history
Credit history depicts whether the borrower is a risky candidate or does he or she has been making payments on time.
4. Collateral
Does the borrower have any collateral to offer to the borrower? If yes, the interest rate of the loan will be lower.
5. Financial condition
If a borrower appears to be a competent client in his or her financial statements, then the lender knows that he or she would make all the payments on time.
So, before you slide down to the path of despair because you think you can’t apply for loans for business with bad credit, know that lenders look at other factors as well.
Take notice of the following tips and improve your chances of small business loan approval.
1. Business Plan: Your chances of loan approval instantly raised when you present us with a 5-year business plan.
2. Financial History: If you have a history of bankruptcy or foreclosure, this will show your financial report. Make sure your economic history is well-documented.
3. Meet the deadlines: Make all the payments before the on-time; failure to do so will take a toll on your credit score.
We understand that running a business is not an easy task and the business’ operations are not always smooth sailing. It’s commonly known that business owners tend to have more late entries in their credit file than non-business owners. There could have been uncontrollable events in the past, leading to a business having less than perfect credit.
How Can We Help?
We still welcome applicants that have a bad credit history, and we have catered our loan criteria to try and consider each applicant’s circumstances as a whole. We also understand that our clients may be sensitive about credit checks add to their file, which is why our application process avoids unnecessary credit checks when providing a pre-approval.
On top of this, our account managers will also personally look after your application and offer options and alternatives to maximize your bad credit small business loan eligibility.
What we offer:
- Bad credit history considered
- The decision in five minutes
- Start-up friendly
- Flexible terms to suit your business cash flow
- Tax-deductible interest
Keep all these factors in mind and apply for a small business loan with bad credit at Clear Skies Capital, Inc
