Bad Credit Tips
Business owners with bad credit can be understandably worried when it comes to receiving business financing. A low credit score will make it much more likely for lenders to deny you funding.
However, there are alternative lenders that will lend to you in spite of your bad credit. Some of these lenders may have a low minimum credit requirement or flexible terms that allow for companies with low credit to qualify.
Here are a few tips on how to find funding with bad credit:
Raise Your Credit Score
Lenders will want to see a rising trend in your credit score - this shows that your business is making an effort to improve credit score.
Keep in mind that improving your credit score is a long process. Check out this article for steps that you can take to help build your business credit score.
Improving your credit score will also help you become better at financial management, and you can progressively build your credit score from bad to good.
Pay Your Dues On-Time
Paying bills before or on the deadline is one of the fastest ways to build your business credit score. Late bill payments negatively impact your credit score, so avoid doing this. Staying on top of your financial obligations shows lenders that you have excellent financial management skills.
Make sure that your payments have been properly reported to the credit bureaus as some vendors may not report your payments or an error occurs at some point in the process.
Make A Comprehensive Business Plan
Your business plan should clearly communicate to lenders how and why their loan will help your business and how you will be able to pay it back. A clear and effective business plan reflects highly on your ability to organize and run your business.
Accel Business Funding has many different funding options for all businesses and funded many businesses for more than $380 million. When banks say NO, we say YES to funding in 24 hours!
If interested in business funding, please contact:
Chris Han, Accel Business Funding
Tel – 818-963-8882