You have bad credit? So what? Do you think some of the most famous and important business men and women of all time stopped at something as trivial as that? The fact is you may have bad credit now, but if you are smart, your bad credit represents lessons learned and risks taken. You still have options that range from loans to online business lenders to new investments. Don’t give up.
Use Online Business Lenders Like Ace Biz Funding
First and foremost, the easiest way to get bad credit business loans is to use an inline business lender like Ace Biz Funding. While banks are notorious for rejecting loan requests, online business lenders like Ace Biz Funding have taken the risks on businesses and attempted to change the game—and it has worked. Big banks are trying to catch up now.
Apply for an online business loan to see if you are eligible today.
Look for Investment Rather than Funding
Bypass the loan altogether and try to get capital injections from investors. A neighbor or family member may be a potential investor and while this may work for some, it can get messy. The best possible way to a bad credit business loan or investment is to go with a lender who has experience in the field or in business in general. This way, you will get the capital you need and more insight from your investor.
Sell or Use Assets as Collateral
Assets are real world possessions that have no credit ratings. If bad credit is affecting your ability to secure a bad credit business loan, go for the assets. You can apply for asset based lending, a method online business lenders use whereby loans are issued using assets as collateral for nonpayment.
If that still doesn’t work, consider selling or even leasing your equipment or space. There may be businesses that can make use of your equipment during the times you are not.
Repair Your Credit
You can also opt to repair your credit. Of course, this is not an option for entrepreneurs who need emergency business loans, but as a long term solution, it is the best. Refrain from Heard Credit Inquiries (the inquiries that damage your score), and stop creating debt until you are finished paying current debt. This is a simple one, but it should be reiterated. Pay what you owe before you start snowballing your debt. The only reason you should be taking out loans when you already have debt is to take advantage of opportunities that you don’t want to miss.
Take a look at the reason you need this loan. Imagine yourself talking to a close friend as if they were in the situation you are in. Use the ideas and thoughts that you develop during these imaginary conversations and apply them to yourself. It may be time to adjust the business model or target market or both. Find your niche.