Have you got a perfect idea for starting your small business but you have a problem? No worries. It doesn’t matter whether you lack finances or potential investors or you have a bad credit history, there is still a chance not to lose the promising market opportunity you have found.
Bad Credit Is Not the End of the World
Even if your credit is bad, and traditional banks and lenders refuse to approve you for a business funding, you can still save the situation. Of course, if you’re a starter, things will get much more challenging for you. According to John Dzida, vice president at Bank of San Francisco, it’s going to be hard to find bank financing.
Generally, bad credit implies a credit score from 300 to 629. This can cause huge obstacles for entrepreneurs trying to obtain a small-business loan. Fred Crispen, senior vice president at Celtic Bank in Florida, says the majority of banks approve would-be borrowers based on a scoring model credit. This can be of special importance for startups.
Bad credit is not a problem for reputable online lenders like emerchantbroker.com. EMB, #1 high-risk payment processor in the US offers a bad credit merchant account to merchants of any size and type. With EMB, you can enjoy lowest possible rates, advanced business financing options, the latest payment processing solutions, and fast and easy application. Entrepreneurs, especially small ones, can try to get bad credit small-business loans from online lenders to start and grow a successful business.
Bad Credit Business Loan Options
There exist a number of factors that can cause bad credit. These usually include a huge credit card debt and a failure to make your payments on time. If you need a business loan for your startup, but you have bad credit, Dzida suggests turning to nonprofit groups and microlenders. Be aware bad credit business funding would be more costly. To qualify for a bad credit business loan, you should improve your chances of getting it. How?
First of all, you should have a well-thought business plan. Also, you should prove you’re working hard to fix your credit and that you’re putting all your efforts to bring your finances in order. Moreover, you should take measures to fix your credit.
You can negotiate a debt collection settlement, or a plan to lower your credit card bill. Then, you should show you’re meeting your obligations. All these steps can help you persuade a nonprofit lender. After having operated your business for a year, you will be able to apply for more financing options to grow your company.