You’ve opened up your business and things are going pretty well. Congratulations! It must feel great considering how long and hard you worked to get your company off the ground. Now that things are finally going your way, you’d like to take it up a notch by investing in your business. It only makes sense. Advertising, buying new inventory, opening a new location – these are all great ideas. And naturally, they all require fairly big budgets to pull off.
Bad credit hurts your chances of getting a business loan approved.
The problem is that, in the past, you’ve had some money troubles. You’ve had to cut up a credit card or two because you maxed them out and weren’t able to keep up with your monthly minimum payments. As a result, your credit score is less than stellar. Unfortunately, this puts you in a bad position in the financial world. Banks are not likely to approve your business loan applications because you have a poor credit history.
“The first, and perhaps most commonly-known side effect of bad credit, is an inability to get loans or financing,” says Credibly.com, “Much like with your personal credit, business credit is one of the first things small business lenders look into when determining your eligibility for a loan. Your credit score doesn’t have to be flawless, but a score that’s too low might be a warning sign that you won’t be able to repay your debts or manage your finances properly.”
Your business partner’s credit is also taken into account by banks.
Something to also keep in mind is the credit rating of your business partners. If you’re not a sole proprietor, your chances of getting a business loan approved rests heavily on the credit scores of everyone who owns the company with you. As Marco Carbajo explains on AllBusiness.com, a positive credit rating is a sign of a person’s ability to properly manage money. Such an individual is “considered creditworthy in the eyes of lenders”, he writes.
“On the other hand if your business partner has bad credit it can hurt your chances for getting financing,” explains Carbajo, “For example, when you apply for a business line of credit, banks require all owners with a 20 percent or greater ownership stake in the business to be included on the application. When one of the applicants has a bad credit rating a lender may deny your request for credit.”
A poor credit history does not impact your ability to secure a merchant cash advance!
At Synergy Merchants, we have come across many a business owner who has complained of an inability to attain a business loan due to a poor credit history. This is one of the main reasons we are so pleased to remove any and all credit checks from the process of approving Canadian business owners for merchant cash advances.
Don’t let your poor credit history worry you any further! Contact us today for a free, no obligation quote for a merchant cash advance! Please don’t hesitate to call Synergy Merchants at 1-877-718-2026 or email us at firstname.lastname@example.org.