In a time where starting a business has become a popular career option, having access to business loan has become more crucial. However, if you either have no credit history or a bad one, chances are, lenders will think twice about lending you money and perhaps even increase the interest rates exponentially.
But don’t worry, there’s another solution. It’s called a bad credit business loan. When you apply for a bad credit business loan with Finance One, you will be provided with the necessary funds you need to start and grow your business, regardless of your credit history or lack thereof. So, to help you get started, here’s what you need to know about it.
What is a bad credit business loan?
Essentially a bad credit business loan is a borrowing scheme for business owners with poor credit history. Lending agencies develop their loaning structure to ensure both the borrower and the lending company benefit from the transaction. As such, they take great efforts to ensure that the borrower can pay the loan within the given time frame.
This means, before applicants can be approved, they have to go through a screening process that evaluates their information.
What documents do you need when you apply for a loan?
When you apply for a bad credit business loan with Finance One, you will be required to provide the following documents:
- Filled out application form
- Signed copy of the Privacy Consent form
- Identification (e.g., driver’s license, passport, and Australian Business Number)
- Bank account statements of the past six months
How much money can you apply for?
Generally, lending companies allow borrowers to apply for up to 80% of their cash flow. However, the applicant can apply for a bigger amount if he meets the criteria.
Business owners can borrow as high as $75,000 to $125,000, provided that the amount is backed by a property and other assets. Amounts that constitute more than 80% of their cash flow are subject to collateral.
How do you apply for a business loan with bad credit?
If you’re interested in borrowing money to grow your business, there are only three steps you need to take.
- Be familiar with your credit score
Credit scores help lending companies determine how capable you are of paying back the amount due. Since your credit score can influence your borrowing powers, knowing what it is is the first step to help you assess your credit limit and the best financing option to apply for.
- Research on your eligibility
Once you have background information on your financial position, the next step is to do your research. Look at different companies online and find out what their eligibility requirements are. Do you meet the qualifications, or do you need to look somewhere else?
Unlike traditional business loaners that look at your annual revenue, years in the business and personal credit score, other lending companies only look at your financial capacity and application legitimacy. Finding institutions where you qualify increases your chances of getting approval.
- Find the best option for your business
After finding a lending company to partner with, the next step is to browse their offerings. Often, their lending options vary, so it’s important to find one that suits your needs so you can make the most of the money.
Grow Your Business with Business Loans
Business loans open the door to so many possibilities for you as a business owner. So, make the most of it and start to develop your company by improving your products and services with the amount borrowed. Who knows, this can be your key to success.
Author Name: Hannah Gilbert
