3 Reasons You’re Getting Denied a Loan, and How Bad Credit Business Loans Can HelpSmall business owners are always on the hunt for funding. And, many of them get turned down for that funding. If this sounds like you, you need to know what it is that keeps getting you denied loans and what you can do to turn things around. To make your business dreams come true, you need loans but if you keep making the same mistakes, you’ll never get them. Here are some of the main reasons small business owners get turned down, and how bad credit business loans can change it all.
1. Your credit rating is just too low, but not for bad credit business loans
The number one reason that small business owners are turned down for loans is that they don’t have the minimum credit score required by the lender. Most lenders, whether for business loans or personal loans, have a minimum number and if you don’t meet it you will be denied. Regardless of what other factors make you a good candidate for a loan, if you don’t have that number, you can’t get approved. With bad credit business loans, there is also a minimum credit score requirement but it is much easier to meet. You only need to have a score of 500 to get approved.
2. You have no collateral to offer, or large revenues, but it’s not a problem with bad credit business loans
Another requirement that many lender have for business owners to get approved is either collateral or large amounts of monthly revenue. These factors allow the lender to take on less risk that a business owner will be unable to make repayments later. For these bad credit business loans, not only do you not have to have perfect credit, but you also don’t have to have collateral or a lot of revenue. The revenue requirement is just $10,000 per month.
3. You only need a small loan, which is fine with bad credit business loans
You may have great credit, but if you want to borrow just $2,000 for your small business, be prepared to be denied. Many lenders design their business loans for larger businesses. They don’t want to waste time on smaller loans that won’t earn them much money. They only want big loans with big interest payments. But, as a small business owner, a large loan can get you into trouble. With bad credit business loans, you can borrow as little as $2,000 or as much as $350,000. You get to choose your amount so you aren’t backed into a loan that doesn’t make sense for you or your business.
Instead of getting turned down by another lender, turn to bad credit business loans. We’ll get you approved in spite of a lower credit score, whether you have collateral or not, and even if you only want to get a small loan.