Contrary to popular belief your business growth is not doomed if you have bad credit. True, it can be more difficult to obtain a business loan or cash injection if you or one of the other directors has a bad credit history… but it doesn’t have to mean the end.
Having a bad credit history will mean that your chances of securing business finance via a mainstream lender will be limited. Banks lend according to the level of risk and the worse a credit history the higher the risk, so a bank loan to improve cash flow in your business will be a no go. However, you have many other options to explore.
Depending upon your individual business circumstances and what the money is needed for will decide upon the type of business finance that you should be looking at and the best provider of that financial solution.
There are many options regarding finance for businesses with bad credit and business loans are only one. There are a wide range of alternative business funding options available.
There are lenders that will provide business loans for businesses with bad credit but the rates may be higher. These lenders look to assess the growth potential within the business, your ability to generate sales revenue and total sales overall; rather than focusing solely on your credit history.
So, if you have been denied a business loan from your bank don’t worry! Get advice, find out your options and get a commercial finance solution that is right for you and your business.