Denied Business Loan Due To Bad Credit?Your credit score is very important. Most traditional banks will reject your application for funds simply because you have a poor credit score. Bad credit makes it more difficult to get a business loan from other sources. This often leaves business owners feeling frustrated. Traditional financing institutions and big banks are always looking for ways to minimize their exposure to risk. For this purpose, they do not want to lend funds to businesses that have poor credit history. Bad credit signifies a lower probability that the business will be able to repay the loan without defaulting. Today, bad credit assessment is an integral part of risk analysis prior to approval of business loans. Where does that leave the businesses with bad credit? How do you obtain funds to run your business? At First Capital Business Finance, we understand your situation. Irrespective of poor credit score, we offer you numerous business financing solutions, viz. business line of credit, bad credit heavy equipment financing, loans against construction equipment, trailer title loan, business cash advance, equipment financing, factoring, and much more.
How to Obtain a Bad Credit Business LoanWith the economic crisis, there is an increase in the number of businesses seeking business loans. This has given rise to financing businesses that offer solutions to businesses with poor credit. And nowadays, there are many financing options for businesses with bad credit. If you are in need of working capital, you can seek a bad credit business loan. Many lenders also offer capital loans against heavy equipment even if you have poor credit. Our financing solutions come with simple paperwork, quick processing and fixed installments. We offer flexible terms ranging from 3 to 24 months.
Get approved in as little as 24 hours.
If a business loan doesn’t suit your needs, then try the business cash advance. This option does not assess your ability to repay based on credit scores. Rather, here we take a fixed percentage of your future credit card and debit card sales in exchange for the funds. This allows businesses to obtain and repay the cash they need against future customer transactions. At First Capital Business Finance, we know you need ready access to funds to run the business successfully. Traditional banks have an extensive processing protocol. At First Capital, we offer you quick approvals in as little as 24 hours with funding in as few as 5 days. We provide you quick access to funds with simple paper work and quick processing.
What Documents Do You Need When Applying For Bad Credit Business Loans?
- Identity proof like a driver’s license
- Cancelled business check
- Bank statements
- Business tax returns
- 500 minimum credit score
- Minimum of $10,000 monthly gross revenue
How to Finance Your Business with Bad Credit Business Loans
- Find out the minimum credit score required for lenders to give you a business loan. Lenders dealing in bad credit business loans usually require a minimum credit score of 500. So if you have a credit score below 500, then focus on building your credit score before applying for a business loan.
- Invest time in your business plan. A well laid out plan can help sway the lender’s opinion in your favor.
- Build your business credit score. To achieve this, make sure your information and details are updated in the credit bureaus. Ask your suppliers to extend your trade credit and accordingly update your agreements. Make timely repayments to creditors. Borrow from lenders that report to credit bureaus and keep your public profiles clean.
- Consider a business cash advance. If you have consistent credit sales, this is the perfect solution to finance your business in the short term as you sort your finances.
- Pay your utility expenses before the due dates. Staying current on all your payments is the fastest way to improve your credit score.