How to qualify for a business loan with bad credit
As a business owner, you know that access to short-term business funding as an essential part of your enterprise’s success. A business loan is often necessary, no matter how smooth your finances have been in the past. Having the ability to qualify for such a loan can often mean the difference between staying in business and having to close your doors. What do you do if you need a short-term capital injection and have a bad credit history?
Thankfully, being in such a position does not automatically preclude you from getting the credit you need. You may not be able to get help from a commercial bank, but other lenders will be able to help you.
Credit unions are one option. These not-for-profit organizations take a vested interest in their communities and will often consider financing for small businesses. Another possibility is to get someone to co-sign for the loan – someone who has better credit and can provide reassurance to the lender.
Increasingly, however, businesses are turning to alternative lenders such as Kore Capital Corporation, which can provide short-term financing with an easy application process and flexible repayment options that can be navigated despite bad credit. These can be secured against your assets, such as your accounts receivable, for example. With these collaterals in place, it becomes much easier to motivate for a short-term loan, even if your credit history lets you down.