Can I Still Get a Business Loan with a Bad Credit?

07 Oct Can I Still Get a Business Loan with a Bad Credit?

We talked about securing a bad credit loan the last time. Now, is a bad credit score preventing your business from securing a loan? Small business owners are usually turned away by lenders when they have poor credit. A negative mark on your credit file suggests you have not managed your finances properly in the past.

How to secure a bad credit business loan

Your personal and business credit history aid lenders in determining whether they want to do business with you, a.k.a. lend you money. This credit score speaks so much about how you managed your financial commitments in the past. Hence, a bad credit history may result into rejection of your loan application. However, this doesn’t remove your chances of securing finance altogether. It can be difficult for you to secure a loan. Difficult, but not impossible.

How can I get a bad credit business loan?

To answer the title of this article, yes, you can get a business loan even with a bad credit. Major banks tend to be strict on businesses with less than perfect credit score but there number of alternative lenders who have more relaxed criteria. These alternative lenders (some of which you probably haven’t heard of) offer loan deals for business owners who have negative credit score. Soul Finance Group has access to these lenders and we are more than glad to help you secure a business loan. These lenders place more importance on the operating history and strength of your business. They do not focus entirely on your credit score when they assess your loan application.

What do I need to apply?

Requirements vary from lender to lender. Your Soul Finance Group broker will guide and inform you throughout the process, especially the documents your chosen lender needs. Your Soul broker will do all the legwork.

But to give you an idea, there are lenders who let you connect your business’ accounting software into their systems to give them an opportunity to arrive at an immediate decision. Other lenders simply need your business financials in order to decide.

Gone are the days when a bad credit score automatically stops you from securing another loan. With the economic performance and tight competition within banks and lenders, your options to secure a loan (even with a bad credit) are now varied.

Disclaimer: Your full financial needs and requirements need to be assessed prior to any offer or acceptance of a loan product.

Corporate Credit Representative (486927) is authorised under Australian Credit Licence 389328.