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How can I get a business loan with bad credit?

How can I get a business loan with bad credit? Topic: How can I get a business loan with bad credit?
June 16, 2019 / By Caleigh
Question: I'm looking to stat up my own business in the next two to three years. I've already started creating my business plan. The only thing is I have bad credit. Is there a way to get a business loan even thou your credit isn't good?
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Best Answers: How can I get a business loan with bad credit?

Alycia Alycia | 3 days ago
Well so far no one seems to have helped you much. There is a way for you to get where you want to be in getting a business loan with bad credit. It will take a little time and thinking outside the box. 1st you will need to build up your corporate or business credit and get you Paydex score up to an 80. 2nd you will need to find someone with a 680 fico and draft a corp resolution for them the be an authorized officer for the sole purpose of building business credit. Their score is only for the loan reference and the loan itself will not get reported to their report nor will they be at all liable for the debt. With the proper steps you can get over $100k, $200k or more of unsecured credit lines using your business entity. You need to be sure to do the steps in the right order even starting with which SIC code you want your entity associated with. If you need more help feel free to contact me. [email protected]
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Alycia Originally Answered: Business Loan with bad credit.?
You definitely should present the store's statistics in your business plan -- but the bank will definitely check if you have collateral, etc. as well. Banks look at several factors before they give a business loan especially for that amount - A business plan explaining what the business is - Your background and experience in the business -- in my experience, this is KEY in the eyes of the bank because they want to make sure that you know what you are doing and that you can make the business work. If you don't have any experience with the business, have someone on board that knows the business to give banks assurance that someone will guide you - Your credit factors because it shows your dependability and how well you handle credit. They will do a credit check on you and poor credit history may be frowned upon, or even reason for the disapproval of your loan application - Your collateral. Banks, even SBA guaranteed loans, want the borrower to show collateral. They want to be guaranteed that somewhere somehow they can get payment from you - Condition or terms of loans. Banks would want to know three important things: "How much money are you requesting? What will it be used for? and For how long will it be needed?" Banks oftentimes prefer to approve loans for items that can be identified, has lasting value, and can be repossessed and sold if things fail. - Equity investment as they will not give you 100% of the amount you need and they want to see that you believe in your business enough to put your own money or you are invested in your business as well Try talking to the bank where you currently have an account. Ask them how important is personal credit rating -- assuming you can have the rest of the other factors that they need. Talk also to your local Small Business Development Center as they are the best resource you can have who will help you locate possible financing for your business Lastly, check if the franchisor offers financing that you can avail of.
Alycia Originally Answered: Business Loan with bad credit.?
Getting a business loan will depend on your credit. The company that you want to franchise from can probably show what the average franchisee takes in, but that includes some that make much more and some that go broke, so a bank can't assume that YOU will make that much. And by the way, you can't assume it either.

Verne Verne
Nope. Work on getting your credit score up. Realize though that getting a loan to start a business is pretty hard anyway, unless you have a large amount saved to invest in it, and a very solid business plan.
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Verne Originally Answered: Are business credit cards in your name totally separate than your personal in terms of your credit score.?
Generally, if you are a small business, you are the personal guarantor behind those credit cards and they do reflect on your personal credit. (you'd have to check your credit bureau to see) On the other hand, if you are talking about corporate cards - where the corporation is the account owner, and you are just an authorized user, then your plan is more correct. Just by paying off your debt however, your score doesn't just pop up to 800. A highly weighted factor in scoring is time in the credit bureau, so no debt, but short credit history won't have as high of a score as someone in with longer history and paid off debt.
Verne Originally Answered: Are business credit cards in your name totally separate than your personal in terms of your credit score.?
A true business credit card is a line of credit that is taken in the name of the business, under the business' credit. Activity, whether good or bad, is reflected on your business' credit report through D&B and other financial institutions, and the liability for any debts incurred and bills owed is with the business. However, some companies out there offer "business" credit cards which they require a person guarantee for. These institutions will often ask for a personal guarantee, and will almost always ask for a social security number from the person applying for the card. If this is the case, the credit card is not a business credit card, but is simply a personal credit card which is used for the business. The business is not liable for bills and debts - you are. When applying for a credit card for your business, watch out for areas asking for your SSN (and not your TaxID or EIN) and be wary of any credit card that asks for a personal guarantee. By ensuring that your credit card is in the name of your business, you can help to build your business' credit, while avoiding creating problems with your own. Many companies offer a list of credit cards that are issued under the business name only. Those lists typically run $300-$900, depending on the quality of the information inquiring. I would suggest starting your search online via google or yahoo. Search for "strong business credit" (just like that in quotes) to find services that sell the information. Good luck, Ilya Bodner Small Business Owner Initial Underwriting Group

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