Top 5 Tips for Businesses Seeking Small Business Funding with Bad Credit:

Literally, bankers would walk out their clients out of the door once they found out their bad credit and has no collateral or security to put down. Those days are gone. You can save face with an online application, but that doesn’t save you time. Working with a small business loan broker like Liberty Capital Group, Inc. will give you the chance to find the solution that every banker will overlook and focus only on the good tier clients.

Here are the business tips you can try to improve your chance of getting an Approval.

1. Focus on Revenue and Cash Flow: As the saying goes, “credit score doesn’t pay the bill, revenue does.” Lenders may be more willing to overlook a poor credit score if your business demonstrates strong revenue and cash flow. Provide evidence of consistent income and emphasize your ability to repay the loan through your business’s financial performance. Some enterpise will withhold depositing funds to avoid paying taxes, our tip would to Deposit everything often so you can demonstrate that you have solid diversed Cashflow source.

2. Explore Alternative Lenders: Traditional banks may have strict credit requirements, but alternative lenders, such as online lenders or community development financial institutions (CDFIs), often have more flexible lending criteria. Research and explore alternative lending options that specialize in working with businesses with bad credit. Like Capital has accumulated Lender throughout their 20 years plus in business so you can have a higher chance of getting approved with them.

3. Offer Collateral or a Security Deposit: To offset the risk associated with bad credit, consider offering collateral or a personal guarantee to secure the loan. Collateral can be any valuable asset that you own, such as real estate, equipment, or inventory. A personal guarantee involves using your personal assets, such as savings or property, as collateral for the loan.

4. What is Cross Corp?: If your credit is preventing you from qualifying for a loan, consider seeking a co-signer or business partner with better credit to strengthen your loan application. A co-signer agrees to be responsible for the loan if you default, providing added assurance to the lender. If a person is not available but the business owner owns another business which can stand on it’s own and can support and guarantee the current one, it’s all doable – it’s called “Cross Corp Gaurantee.

5. Demonstrate a Solid Business Plan: A well-crafted business plan can help instill confidence in lenders, even if your credit is less than stellar. Outline your business’s goals, strategies, and financial projections to demonstrate your ability to manage and grow your business successfully. Highlight any factors that mitigate the risk associated with your bad credit, such as a loyal customer base or a niche market.

By following these tips and focusing on your business’s revenue, exploring Alternative Lenders, offering collateral or a additional guarantee, seeking a co-signer or partner, and demonstrating a solid business plan, having another corporation gaurantee the funding, you can improve your chances of securing a small business loan despite having bad credit.

Get Started Today:

Working with Liberty Capital, your one stop-shop for all your commercial business loan even if you have bad credit. Ready to take the next step towards building wealth and assets through business funding for bad credit can help you build your payment history, build Comparable Credit and Business Ttradelines. Contact Liberty Capital today to learn more about our loans for bad credit for businesses and discover how we can help you achieve your business objectives knowing no one else will do. Let us be your trusted partner in financing success. Get Pre-Approved Today!