Business loans are something you should understand before you decide to get one or not. Getting loan for your business after had a bad reputation is harder than usual. When we start a new business or a new venture, usually we face a problem with capital. We lack of capital, human resources is easy to find. Stock and material can we get from many sources. But, when we talk about money or capital. We usually give up and think the whole word is against us, and lose hope and fear to continue our business.
How to Get Business Loans for Bad Credit?
Before apply business loans for bad credit to loan company, maybe we should start ask our relatives, family, or close friends. We all know getting loans is complicated. Especially to loan company. They said easy at the beginning from their banner advertising, but at the fact, we must face many complicated procedure and many bureaucracy steps. And the interest rate for bad credit is extremely high and non sense. If we loan money from our family or relatives, the interest will be lower than that and even maybe no interest at all.
Start Improving your Business Credit Score
World famous Financial Planner Suze Orman ever said: to get business loan easier, start improving your business credit score. Rather than sad to figure it out and make a cheat, we better improve business credit score. The easier step is obtain a tax ID number. With this tax ID, government will know your business entity. And then the next step is make a good relationship with bank. Start make a good communication with bank customer service, teller, banker, credit analyst and follow their rules and never make them down.
You can also ask for credit report, its’ cost none. From there credit report you know exactly your bad credit position. From there you know the point you stand and you can make a goal, and hopefully get business loan. If we had no assets, we only can give reputation. Reputation not build in one night. But, if we already had reputation like Donald Trump, all lender and financial institution begging to give you credit and loan.
Using Small Local Bank.
The other tips is using small local bank. Looking around you, there must be some bank that will give you business loan. But small bank will only can give small amount of loan. But it’s okay, start small because from this, you are building reputation. Your business credit score will improve time by time. Lender don’t want to take a risk dealing with bad credit loan. They protect their money. So it’s better to co-operate with them, and be honest. Do business with integrity and trustworthy. Loans will give based on you credit rating and history. If we can’t deliver and show good credit history, it’s impossible to get loans. All financial institution will afraid to you.
We have our own business and we were originally with a franchise and want to branch off on our own for janitorial commercial cleaning. With the Franchise, we were taking in about 8000/month gross, but with fees and other expenses it was more like 2500 a month.
If we could do all this on our own, we would be much more profitable and have to answer only to ourselves.