Say for example that your company has no or poor credit, then better expect that things can be quite challenging to get financing but this doesn’t mean it is not possible. If you’re looking for business equipment financing, cash flow financing or even business loans for companies with bad credit, you need to show that you’ve got a stable flow of funds to your firm.
To put it simply, you should show them months of bank statements along with charge back or NSF charges and brief explanation why the credit issues took place and what are the actions you have done. Let us face the fact that many companies for the past few years have suffered credit issues and that’s not the deal killer. Actually, what the deal killer is the lack of resolve to these issues that have surfaced. Here is a quick list where you must begin.
Number 1. Access issues of your company’s credit – why do you think this has happened and when reviewing this, don’t just look at the signs but also, try to figure out the root cause. It is not just enough to say that your sales have dropped off. You must know why did they drop and what happened why this sort of thing happened.
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Number 2. What did or can you do to alleviate the issue – this is going to be the next thing that you have to know after knowing the issue. Be sure that you have documented these medications in an effort to review it at a later time and see what worked and what has not and after that, do it again to make improvements.
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Number 3. You are now ready for the loan – after learning about the issues and figuring out the things you can do, now is the time to show what you have done to resolve the problems and it’ll put you in a better position for applying business loans even if your firm has poor credit.
The next thing that you must do is to realize that you have less that desirable credit because of the past but, you’ll be well equipped to talk with the funders that are dealing with these situations. Traditional bankers ought not to be in your list of funders whom you will be talking to.
It is because of the reason that banks are the most conservative lenders and you have to speak with non bank funders with understanding that the rates that’ll be charged assuming that you will get an approval is going to be higher than the advertised bank rate.