March 22, 2019 Last updated March 18th, 2019 333 Reads share

How to Get a Business Loan With Bad Credit?

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Every business needs funding to grow and flourish. In fact, pursuing funding at the right time is a big factor that separates successful businesses from those that fail.


In today’s business landscape, there are lots of potential sources of funding including Angel Investors, bank loans, business incubators, crowdfunding sites, microloans, small business administration, venture capital, and more.


Securing that funding can, however, be a difficult task. Not only must those businesses pursuing funding provide a range of documentation and go through rigorous processes.


Then there is the question of the credit score itself. Many businesses and individuals are concerned that their credit score is too low to secure a business loan. But that’s not necessarily the case.


When it comes to small business loans no credit check options are available, and this can be used to help a business turn around its fortunes and propel itself to future growth.


If you are looking to secure a business loan with bad credit, there is a process that you will want to follow to get the best possible result. Here is a closer look at that process and the steps that you can take to secure the funding your business needs.


Decide Whether or Not a Business Loan is Right For You

First things first, it’s important to invest the appropriate amount of time and resources into determining whether or not a business loan is actually the right funding option.


As mentioned previously, there is a range of alternative funding methods available and some of these might be better suited according to your distinct needs and the state of your business. You can do some preliminary research by yourself, but you should also ensure that you invest appropriately in any professional guidance that you need.


Once you’ve confirmed that it’s a business loan that your company needs, then it’s time to dig deeper into exploring the landscape and the options that are available to you.


Understand the Options Available To You

There is a range of providers on the market, so you’ll want to spend some time exploring exactly what there is on offer and how your business could benefit.


You shouldn’t be afraid to contact any companies that you might be interested in. Not only will this provide you with additional information, but it will also give you an indication as to the level of customer care you can expect to receive.


Of course, you should pay attention to a range of areas. Not only will you want to pursue a partnership with a company that offers the best possible terms, but you’ll also want to make sure that you’re going to receive the best support possible and the company has great customer reviews.


Give yourself the key criteria that you need, then assess those potential companies according to your specific needs.


Create a Credit Building Strategy

Once you have whittled down the long list of potential lenders, then you’ll want to pay closer attention to the requirements of each. Each lender will vary greatly in terms of the credit scores they require and the extent to which they are willing to lend to smaller companies.


Now that you have a better idea of what you might need in terms of credit score, you should begin formulating a plan to reach that goal. This could include a range of credit building strategies and you’ll want to ensure that you do some extensive research in this area to have a solid strategy going forward.


Again, you could decide to enlist the help of a professional here if you find that there are steps you would like to take that are outside of your own area of expertise. You can also consult directly with the lenders that you are interested in working with. These lenders will be able to provide you insider information and exact recommendations on how to work with them successfully.


Get Your Documentation in Order

Now that everything is handled in terms of defining the needs, you’ll want to start compiling the documentation that will act as testimony to your eligibility. This can be a complex exercise and it’s a good idea to set aside a generous amount of time to work diligently.


You should create a detailed checklist of everything that you need, and how you can go about acquiring those important pieces of documentation. You should be extra careful to acquire multiple copies of each, and take care of any special considerations like whether or not some documents need to be notarized by a particular party.


Again, you can cut down on a lot of future headaches by speaking directly with the potential lender to completely understand their needs and how you can meet them. They will be sure to help you and it’s also a way to begin to build a symbiotic relationship with those lenders.


Submit Your Applications

Now that you have everything in place and all of the documentation that you require, it’s time to begin submitting your applications.


Again, the complexity and duration of this process will vary according to the lender that you are applying to. Some lenders make it their priority to offer fast and simple service to their customers, and this can, in fact, be a big factor in which lender you decide to work with.


You should aim for a lender which can provide you with quick turnaround time. This will ensure that you get your answer promptly and you are able to begin taking the next steps whether it was a positive or a negative response to your application.


Resubmit Applications Until Successful

You might find that your particular application was unsuccessful, but you should not let this deter you. Each lender has a different set of criteria and priorities, so you should continue to look at alternatives who might be able to offer you what you need.


Once you have a successful application, you’ll find that your business can enjoy a new lease of life with additional funding. This can then be used as you see fit to enter a prosperous future.


We wish you all the best in your application and hope that this advice has served you well!


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Chad Otar

Chad Otar

Chad Otar is the CEO at Excel Capital Management, a pioneer in the Fintech and alternative lending space. He has assisted thousands of business owners to receive funding over the last 10 years and is focused on helping one small business at a time achieve access to capital.

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