One of the primary reasons that so many Canadian business owners get their business loan applications denied by banks is because they have bad credit. A history that reflects any late payments or inability to pay at all will significantly hurt one’s chances of ever borrowing money again. We suppose that stands to reason. But, then again, everyone’s situation is different. And hardworking Canadians who wish to grow their companies deserve opportunities to put their plans into action.
To banks, credit checks are big deals. They determine whether or not an entrepreneur can be considered trustworthy enough to be lent money. A credit report reflects a number of things that determine one’s credit score. Among them – and probably the most obvious – is a person’s payment history.
Have you been able to prove to a bank that you can make your payments on time?
All forms of credit require you to make minimum payments on a monthly basis. Primarily, your ability to make these payments is used to determine your credit score. If you are regularly late making payments, or you don’t make your payments for the full required amounts, your accounts will be considered in default. The later your payments are, the worse your credit score will be. So, if you’ve had any issues with paying your credit card bills on time, this will show up on your credit report.
How much money do you still owe your lenders?
Of the credit that you currently have available, how much of it are you using? Do you have large debts? Or is there a lot of open credit that you don’t seem to need? The less you owe, the better. However, banks do like to see that, if you have outstanding balances, you are capable of making payments on them.
How far back does your credit history go?
When did you first get your credit card? The length of time between then and now is actually a determining factor in the strength of your credit score. Longevity counts for a lot. If you’ve been making payments and avoiding late payments since you’ve been borrowing money, it will reflect kindly on your credit score. The longer your credit history, the better your score will be. That is, unless you have a long history of not paying on time.
Have you opened up any lines of credit recently?
Have you signed up for a new credit card as of late? Your credit score takes into account how many new accounts you may have. It is assumed that if you’ve opened up a new account recently, you’re a greater credit risk. This is based on the belief that when people open new accounts, they are experiencing financial difficulties.
Why doesn’t Synergy Merchants care about any of these things when offering you money?
Because you’re not borrowing anything from us! Synergy Merchants’ unique merchant cash advance program offers you money based on your credit card and debit card sales. In actuality, we are paying you in advance for a portion of your future sales. It is a purchase, not a loan. As a result, checking into your credit history is unnecessary!
Contact one of our licensed funding specialists for further information orto get a free, no obligation quote! It’s as easy as calling 1-877-718-2026 or emailing email@example.com.