subject: How To Get Business Credit With Ugly Credit [print this page] If you want to start a business, or get additional capital for an ongoing business, you may think it is not possible because you have bad or ugly personal credit. It's true that traditional lenders such as banks do not offer credit as readily to business owners that have less-than-perfect credit. However, today there are lending institutions that specifically offer bad credit business loans.
These lenders look at offering credit for businesses that have bad credit differently than traditional lending institutions do. They consider issues like whether or not a loan from them will, in turn, make you more capable of paying them and your other creditors. If so, they will likely offer you a bad credit business loan or equity line of credit.
These bad credit business loans or equity credit lines will cost you more in interest and will potentially tie up your collateral. Simply put, the lender charges more because you can potentially cost them more. This does not mean that you should not get one of these bad credit business loans or an equity line of credit. What it does mean, however, is that even if you have bad personal, you can still get the money you need to keep your business going. Just shop around like you would for any other product.
Bad credit business loans are loans that usually require some or all of the following:
Higher interest rate
Higher fees and pre-payment penalties
Collateral to secure the loan
Attachments to your businesss receivables and other assets
Attachments to your personal assets
However, there is an alternative to settling for a high interest rate business loan. Start by cleaning up your personal credit report and establishing business credit for your company. This can be time consuming, but the work is completely worth the reward at the end.
Some of the things you can do to clean up your personal or business credit are:
Get out of debt The more debt you have, the more of a risk you look to be by the banks and the less likely they are to give you new lines of business credit. Don't accrue new personal debt and work to pay off your past debts.
Consolidate your debt having a number of sources of debt can have a negative impact on your credit. One smart way to consolidate your debt is to look for a 0% interest balance transfer offer where you can combine all your debts into one bill that has no interest for a while. Use this time to pay as much extra as you can of the debt and avoid interest charges.
Make regular, timely payments on all your bills. Just one late payment can mean a report to the credit companies and dings on your credit report that will take more time to clean off.
Remember, a bad credit business loan and or equity line of credit may be a good solution for your business, but shop around. Weigh your personal and business pros and cons wisely, especially if you are using the loan to keep your business alive through already-bad times. Conversely, if you had some rough times with your business in the past, but could grow exponentially in the current business climate, obtaining a loan or line of business credit may be the only way to grow!
Pat Gage, The Opportunity Creator, has over 18 years experience in money and finance, business building, real estate investing and marketing. The Opportunity Creator is not only a sought-after business coach but he also is a national speaker, trainer, and life-long entrepreneur who himself has started several companies.
For more information, visit Gages site at http://www.10stepstomoney.com
by: Patrick Gage
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