If you have bad credit, then understandably you will find securing a loan more difficulty as many banks will be unwilling to lend you money. However there is no need to worry, securing a bad credit business loan is possible, and you will find many organisations who are happy to do business with you.
If you borrowed money to set up your business and you struggled to make your repayments, which is very common for small and young businesses then this will have had a negative effect on your credit rating. This will make finding more funding a little more difficult.
If you are in this position, or you simply have bad credit and need to borrow then a bad credit business loan may be right for you, and we can help you get the best possible deals.
Finding bad credit business loans
If you have bad credit, then major banks are unlikely to be able to help you in your search for bad credit business loans.
All lenders take risk when lending money, and all lenders like to have confidence that they will have their loan repaid in the future, therefore you need to find a lender that is willing to do business with you. That means they need to feel confident taking a risk with you.
Advice on bad credit business loans
To help you secure a bad credit business loan it is important to get some advice from an independent commercial finance professional, who will be able to advise you on the most suitable finance options and introduce you to the right lenders.
Commercial finance professionals are experienced in dealing with borrowers in all types of situations, and they will know how to find the best bad credit business loan for you.
Because the lender will require some form of guarantee from you that no matter what happens they will be able to recover their money, they may require you to put up an asset as a form of security.
Putting up a physical asset like a building puts your business at risk if you are unable to keep up the loan repayments, therefore you should consider all other finance options first.
A commercial finance professional will be able to suggest alternative solutions, some of which may be unfamiliar to you but could prove to be the perfect solution for you.
Borrow against your sales ledger
Invoice finance may be the perfect solution for you. Invoice finance involves you borrowing against your sales ledger.
The benefits of invoice finance include:
- You are borrowing money that you are already owed
- You get paid often within 24 hours rather than waiting 30-90 days for your customers to pay you
- The lenders manages your credit control so you save time and money
- You don’t need to offer assets as security
- It doesn’t matter if your have bad credit history
For further advice regarding business loans please contact us on 0800 597 4757 or apply online using the form opposite.
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