Bad credit can make life stressful if you are an individual who has difficulty getting funds for a necessary purchase. It seems that more and more people are finding themselves in this situation than ever before. Bad credit can be especially damaging if the problem plagues a business that is in dire need of funding to start up, expand, or add to an existing operation.
One report notes that nearly two-thirds of business owners go in search of funding by starting with specific banks. The success rate has historically been quite low, this report stated, noting that very few business people are successful with this traditional method. This has driven a number of company owners to try a different path for securing small-business funding.
Small is Difficult
Statistics show that owners of smaller companies who are credit-worthy are finding it increasingly easier to get traditional bank loans. For the remainder of those who have tried to get money from a bank, the story is a bit different. It is simply more difficult for small businesses to get traditional loans. This is the key roadblock for all commercial ventures, because it prevents businesses from hiring new employees, acquiring new inventory, and adding equipment that will take their business to the next level.
There are alternatives for getting a one-time loan or a line of credit, even when the business and/or the individuals have a credit standing that is less than stellar. In these unique situations, the lender generally takes into consideration some other factors, including deposit history and sales on credit. These elements can make a difference if they show a positive history and promise a positive trend for the future.
There are lenders who will provide a bad credit business loan with flexible terms to fit a specific need and interest rates that will be competitive. The leading providers of these loans can deliver funds with no hidden costs, which can be the difference between a successful loan agreement and a total failure. Loan companies that specialise in assisting small businesses with bad credit use slightly different criteria when determining eligibility.
Of course, the key difference is that these lenders will consider your application for financing even if you have a poor credit history. Some of the more traditional banks won’t let the process get even that far. Staff members are experienced in working with businesses that need this alternative source of funds, and they guide you through the steps in a friendly and positive manner.
Loans can be arranged for both start-up businesses and established companies with terms extending up to 36 months. The next level can provide up to $500,000 (premium business loan) with approval in three hours or less. Unsecured business loans are sometimes offered as well, with smaller amounts provided to established companies in certain sectors. However, these latter agreements are often restricted to businesses that have a better credit history.
The best way to find out if a loan of this type will work for you is to contact one of the knowledgeable representatives and provide a few items of basic information. If you want to know how others have fared with this loan method, visit a loan-company website and read some of the testimonials.