Having great credit when running a business should be a top priority. You’ll use your creditworthiness to get the working capital and loans you need to keep your business running. But if your credit isn’t ideal, there’s still hope.
Getting a business loan with bad credit is possible, but it can be challenging. Let’s look at how you can get funding for your business without fearing for your credit score.
Create a Business Plan
If your credit score is less than desirable, having an organized business plan can help build confidence that you have a plan for how to use the loan money. You want to show the lender you’re confident you can repay the loan. If you can show your sales are on an upward trajectory, lenders may be more willing to work with you.
Consider a Merchant Cash Advance
If your credit score is poor (450-549), a merchant cash advance might work more in your favor. Your eligibility for a cash advance is largely determined on your credit card sales volume. This type of loan is less risky for the lender because a portion of the funds is repaid daily from your credit card sales.
Raise Your Credit Score
If you’ve applied for loans and are constantly rejected, take a few months to raise your credit score. Pay your bills on time, financing an item and paying it off, and keeping low balances on credit cards can all contribute to a credit score increase.
Building better credit won’t happen overnight. It’s important to start forming good financial habits before you need to rely on credit so that when you do need a loan, you’ll have a better chance of securing one.
Apply With Syndicate Lenders
Good credit or not: we’re here for you! Syndicate Lenders specializes in helping businesses get loans, even when other lenders refuse to fund them. Our requirements are minimal: businesses that have been operating for at least one year, have $15,000 in monthly revenue, and a credit score of 550 may qualify to receive a loan.
Request a quote or apply for a small business loan today so you can get the funds you need to grow successfully.