Bad Credit Business Loans
Are you looking for a business loan but have bad credit?
If you decided to embrace the fact that bad credit business loans are the only option for you and you’re willing to accept paying a very high interest rate; stop right now before you do anything.
Let’s face it, there’s no shortage of hard money lenders willing to loan you money but at what price?
In this post I’m going to share with you some solutions for getting the cash you need without absorbing such a painful interest rate.
You can avoid bad credit business loans if you simply minimize the risk to a lender. Lenders use your bad credit ratings (FICO® Scores) as its risk assessment barometer.
The lower the score you have, the greater the risk you present. The greater the risk you present, the higher the interest rate you are ultimately going to pay.
Bad Credit Business Loans Video
To minimize risk here are three ways you can get the cash you need without the costly interest.
1) Co-Signer: A co-signer is also known as a guarantor for a loan and can be an excellent solution. If a co-signer has excellent credit ratings or collateral to pledge, you can avoid having to deal with bad credit business loans alltogether.
2) Transfer of Ownership: Do you have a business partner? In some cases one business partner with bad credit will ruin the chances of obtaining a loan for the business. If you are the owner with bad credit and your business partner has excellent FICO® scores than consider a temporary transfer of ownership.
In short, you would simply transfer your percentage of ownership in the business to your partner so he can apply for the loan. This is much more cost effective than having to deal with a bad credit business loan. Be sure to consult with your CPA and attorney on what steps need to be taken to do this.
3) Business Partnership: Don’t have a business partner? Why not take on one? Now, let me be the first to say taking on a new business partner who can help you get the loan you need can be a blessing or a nightmare. Take some careful consideration before offering ownership in your business.
While all three of these options can help you avoid bad credit business loans they don’t solve the underlying problem at hand; your bad credit.
I strongly encourage you to start your credit restoration so you can improve your FICO® scores and work towards obtaining the financing you need at the best available bank rates.
Looking to build and obtain business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor lines of credit, fleet cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>
To Your Success In Business and in Life!
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About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for Dun and Bradstreet Credibility Corp, the SBA.gov Community, and All Business.com .His articles and blog; Business Credit Blogger.com, have been featured in ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The San Francisco Tribune’,‘Alltop’, and ‘Entrepreneur Connect’. You can also find Marco on Google+.
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