Don’t Let Bad Credit and High Business Loan Rates Hold You Back

2015-04-01

Jeffrey Bumbales

Just about every small business has the same obstacles to overcome every so often, including getting their hands on the capital necessary to grow their businesses.

But a bad credit score could be a huge stumbling block. A credit history that’s less-than-par will almost always lead to rejection from traditional banks and lenders when trying to secure a loan or line of credit.

Applying for a business loan is a little like applying to college: marks matter. Finish high school with low marks, and the odds of you getting accepted into your school of choice plummets by the point. In much the same way, if your credit score is less-than-par, the chances of getting a stamp of approval on a business loan application from traditional lending sources are slim to none. If you are approved you will be facing high business loan rates.

But don’t wave your white flag just yet. While you can’t just throw your low credit score in the closet and pretend it doesn’t exist, there are still ways to go about getting the loan you need to grow your business, even with bad business credit.

 

Why Do Business Credit Scores Matter?

Much like personal credit, there are big credit bureaus out there that gather information about your business credit, and it’s this score that matters when trying to obtain business financing. Big banks use business credit scores as a means of helping them judge whether your loan request should be approved or rejected. In addition to business credit scores, lenders will also look at the content of the business credit reports, including any major payment delinquencies, collections, tax liens, bankruptcies, judgments, and so forth.

But while there are plenty of factors that can negatively impact your business credit score, there are ways to boost it too. Making on-time payments to creditors, and staying on top of your debt financing can have a positive effect on your business credit, and improve your score over the long run.

Improving your business credit score goes hand in hand with building your business. And to achieve consistent growth in your business, paying back your loans in a timely manner and using your credit responsibly is a must.

 

Where to Get Business Funding if You’ve Got Bad Business Credit

OK, so now you know what to do to improve your business credit over the long haul, but what do you do in the meantime?

Simple. There are plenty of alternatives to being at the mercy of big banks to get your hands on the capital you need to grow your company, or even cover unexpected expenses that could sabotage your business.

Alternative lenders are available online to help small business owners get their hands on the money they need right away. Just about every small business owner can attest to the ongoing stress of bringing in enough money to cover vendors, overhead and employee payroll – while having enough left for over for a rainy day. And alternative lenders understand that.

Even if you have bad credit, you can still get approved for a number of small business financing options, including one of the following:

Business Line of Credit – Arrangements are made with a lender in which a maximum loan balance is established. You can then borrow however much is required at any given time. Interest is only charged on the amount actually withdrawn and still owed against the total loan balance.

Short-Term Business Loan – A short-term loan can be used to finance your temporary working capital needs. These loans are typically repaid in less than a year.

There are tons of benefits that these alternative loan options can provide for small businesses like yours:

    • Easy application
    • Quick approval process
    • Fast access to funds deposited in your account
    • Simple repayment terms

You can take advantage of all these benefits, without ever being disqualified for bad credit. A small business financing solution from Credibly.com is an excellent option for businesses with poor credit. Whether you need some short-term help with your cash flow, need to pay off a few vendors right away, or want to capitalize on a growth opportunity before it disappears, Credibly.com is here to help.

 

Looking Beyond Your Business Credit

At Credibly.com, we look past any bad credit, and instead focus on the strength of your business and the direction in which it’s heading. Short-term small business loans from Credibly.com more than pay for themselves when you consider the costs saved and the added revenue that they help to generate.

Don’t throw in the towel if the banks turn you down. Instead, turn to Credibly.com to get the funding your small business needs right away! Apply now!