Can You Get a Business Loan with Bad Credit
Having a bad credit score is one of the major problems you will encounter when you try to apply for business loans, especially in banks.
Bad personal credit not only gives you limited options when applying for business loans but also makes it more difficult in terms of acquiring one.
Can you get a business loan with bad credit score? The answer is relatively depending on you. Generally, having a bad credit score is bad news for people who wish to have business loans, especially if they are asking for help from banks. However, there are several institutions and options that can help you acquire up to $250,000 worth of loan.
Here are several things you need to do to acquire that important business loans you need:
Be patient. Patience is the most important thing you should practice when talking to financial institutions, which will lend you money. Having a bad credit score leaves you with no other choice but to hear majority of the applications being rejected. However, only time can tell if these banks will approve or reject your application.
Some people think that having bad credit scores is bad. However, talking to banks and other lending institution will let you know that it is not bad as you think. Most of the banks in the US are now offering credit extensions for people who have already maxed out their credit lines. It is worth it to try.
Keep trying. Know exactly that you have already hit bottom before you say that you belong to the “bad credit” category. Before you dismiss the idea of acquiring the business loan, you should try and see if banks will approve your application.
Small business loans are typically available even if people have bad credits. Having this kind of loan is not bad than to have none at all.
Use your business credit score. Instead of using your personal credit score, you can use your business’ credit score to ask banks for loans. Since your personal credit is not tied to your business credit, there is a bid possibility that banks will approve your application.
Phone a friend. Asking your family and friends if they can lend you the amount you need is not a bad option. Although this does not work to most people, it is not bad to ask help from people close to you. They can extend help while keeping your integrity intact. Just make sure that you pay them as promised.
It is also necessary to inform them about the business risks and the problems you may encounter before they lend you money. This is to avoid any “bad blood” between you and your family or friends. Offering them high return of investment often works best to get their nod.
Pay the bills. Paying your phone, Internet, cable, electric bills on time will also help you urged banks to grant you loans that you need. It also works best if you use those bills from your company.
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