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Important Things To Consider When Scouting For Bad Credit Start-up Business Loans
Here are some reminders for entrepreneurs, who are planning to apply for bad credit startup business loans:
Request for the latest copies of your business credit report. Even if you\’re sure that your enterprise possesses a less-than-perfect credit rating; still, we advise you to order and examine your business credit files. After all, it will help you determine the reasons behind your poor credit rating. Moreover, you will have the opportunity to check if there are errors or inconsistencies in the documents you received. Always remember that inaccurate entries, unauthorized charges and outdated accounts can pull the credit score of your business down and can ruin its chances of being granted a suitable loan.
Should you discover an error in your credit or payment history, immediately write and send a letter of credit dispute to the three major credit reporting agencies – Equifax, Experian and TransUnion. Afterwards, wait for the employees of these firms to complete their research on your claim. If they discover that your credit dispute is valid then, you can look forward to receiving documents which contain higher business credit scores. And in time, you can use them when scouting for and inquiring about the business financial deals offered in the market.
Don\’t settle for the first offer you will receive. Always remember that more and more firms today are opening their doors to business owners with fair, poor and even no credit history. In fact, by simply asking for referrals from your friends or by using a reliable online search engine, you can soon find a lending firm that can provide your business the funds it needs.
And don\’t settle for the first program you will find. Instead, you should take the time to compare the features imposed on various startup or small business loans. By doing so, you can improve your chances of finding one that perfectly suits the needs and financial capability of your enterprise, despite its poor credit standing.
Secure your loan. In some cases, you might be required to offer collateral to guarantee the repayment of your bad credit startup business loan. After all, your prospective lenders might be interested in having an assurance of recovering the funds they will provide for credit.
To anticipate such requirement, we advise you to consider a personal or business asset you can pledge against your business loan. It could be your home, car, shares of business, heavy machinery or equipment, etc. Keep in mind that the collateral or security you will provide can help improve the rates and terms that will be imposed on your business loan. So, as much as possible, choose an asset that will fetch you the best rate of interest, the largest loanable amount, and the most flexible payment terms and options.
Have a co-signer. You can also look for a fellow business owner or a creditworthy individual who\’s willing to co-sign your application for a bad credit startup business loan. After all, the excellent credit standing of such individual can help boost your chances of receiving funds you can eventually use for financing the needs of your small shop or store.
Just remember that the manner by which you will handle your payments will have a huge impact on the credit history of your co-signer. Hence, to help him/her maintain his/her good credit standing, you should do your best to keep up with your monthly dues.
Copyright (c) 2013 Irish Taylor
Irish Taylor is a business loan specialist and has been giving consumers and entrepreneurs with startup financing as early as 1992. She has helped people with credit and loan problems especially pertaining to