If You Have Bad Credit, Can You Get A Business Loan?

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Having a bad credit history is something that frequently trips up applications for business finance, particularly when they go through the convention routes. If you think that your credit file might be working against you, then things can quickly get frustrating, particularly if you're hoping to move your business ahead but don't have anywhere you can turn.

Can you get business finance when you have bad credit?

If depends greatly on your personal situation, as well as your willingness to employ various kinds of security. However, it is very much possible for you to get business loans even with bad credit history. It's always wise to consult a specialist regarding sourcing finance for unsecured loans, bad credit UK.

In many cases, companies that go through financial difficulties look for finance solutions through their banks more than anything else. On the other hand, and for many different reasons, banks aren't the only options anymore for a lot of small firms, much less business owners who have poor credit histories. Due to this, the market is starting to see a growing trend of lenders that offer alternative lending methods.

It's crucial to keep in mind that with this boom of different alternative lending platforms over recent years, a growing number of lenders are offering finance options for companies that have bad credit, which means this particular issue is getting less important to finance applications.

On top of this, there are a variety of government initiatives and grants out there which help a business survive and grow. After all, helping any business work instead of stopping their trade benefits the national economy, which means that advice and help are routinely available.

Discover Your Funding Possibilities

What does all this mean for your business?

Whether your history is checkered or you just have recently had a number of financial troubles, many solutions are out there which can provide you support in a variety of circumstances. While mainstream lenders often see things only in black and white perspectives, we prefer listening to you and your story, meaning you not only get the opportunity to talk to lenders, but also a chance at finding the very best possible match.

Here's what you should look out for. If you realize that your company is currently in similar circumstances, then don't let the search for finance put you off, as there might still be answers out there for you.

Business CCJs

Lenders will take into consideration how many you currently have, how valuable they are, and how frequently you get them.

Winding Orders

If you've been subjected to these kinds of orders previously, even when they're rejected, it could be something that impacts your financial applications.

Your Visible Financial Performance

When doing checks on your business, lenders frequently analyze what public data is available about your business. Even if you don't think that information is correct, a number of conventional lenders make assumptions just based on your company's net worth and if you do or don't hold a healthy sum of money in your company.

Directors' History

If underperforming or failed companies have a common directorship, that might influence how lenders think about your company, even if it is performing relatively well.

The People Behind The Company

If the people involved with the company have personal histories of debt management plans, IVAs, or similar things, this could make it harder to get financing.

So, how does this work?

Since lenders necessitate some type of security in order to offer companies finance, we're starting to see a lot more creativity applied in how parties find it. This might be done in numerous ways, and the specific lender terms are different for every deal. For the most part, businesses are getting solutions that are increasingly tailored, and this is a good sign of a flourishing sector truly interested in lending to small businesses.

For instance, rather than looking a company's directors, some lenders are actually open to considering healthy turnover as an indication of a viable company, as some providers might use assets or guarantees in order to secure funding. The possibilities are numerous.

What's open to me?

Since such lenders offer tailored business loans, many more companies are now free to access their finance options by employing various kinds of security.

Turnover Loan

If your credit score is strong and a company operates with a healthy turnover, then even a history involving past issues might not rule you out for loans based on the turnover of your company.

The Business Credit Card From Capital On Tap

The business credit card from Capital On Tap is intended for many different forms, which includes those without perfect credit. If you aren't ready for any other types of borrowing yet, then you might still be eligible to get a business credit card thanks to Capital On Tap.

A soft credit check is the only thing they run, which doesn't leave any footprints on your credit history, meaning you can check out your eligibility without impacting your credit score.

Asset Finance

For companies which are poor in cash but rich in assets, there's a high degree of probability that lenders might be willing to take on vehicles, equipment, and commercial property as forms of security. This will assure them of an investment that is lower in risk, since they are more focused on what kind of security is available above all other considerations.

Invoice Finance

Typically through the form of factoring, a number of lenders are going to look over financial issues and past credit history when the currently operating company is functioning rather well, especially if it has debt that is owed to it through invoices. Given how many variables are involved, it might be worth consulting a specialist regarding invoice finance. If your company is suitable to this, it might just prove to be a helpful solution which not only offers an alternative method of sourcing finance, but also helps you secure more efficient income since invoice payments will get fast-tracked.