Starting and running a small business isn’t easy. You should have enough dedication, passion and the necessary resources. If you don’t have the necessary working capital to launch or expand your business, you might be looking for the answer to how you can finance your business plans.
Even if you don’t have stellar credit scores, you can choose from among a variety of business funding options available for entrepreneurs. You can turn to a reputable business loan provider and high risk payment processor like First American Merchant to get the best for your business needs. FAM offers exceptional business funding options, including a bad credit merchant cash advance, to merchants of any type and size. Here is how you can improve your chances of getting approved for a loan even if you don’t have good credit:
- Check Your Personal Credit
Check your personal credit with the following credit bureaus ─ Experian, Transunion, and Equifax. See whether there are any errors. If yes, dispute any errors you find.
- Check Your Business Credit
Turn to one of the credit bureaus or a company like Dun & Bradstreet to check your business credit report. Make sure the information provided is correct. If you find something inaccurate, it must be removed or corrected.
- Prepare All the Necessary Documents
Gather all the necessary documents that potential lenders are going to request. Different lenders are likely to have different requirements. However, make sure to include your business and personal bank statements, business information (e.g. how long you’ve been in business and your net income), and information on your clients and customers. Don’t forget about legal documentation that shows the ownership and structure of your business.
- Be Ready to Explain Why You Need the Loan
You should be able to clearly explain how you’re going to spend the loan. Be specific about what business plans and goals you have. Your potential lender will ask you questions about them, so be prepared to answer them.
If you’ve applied for a business loan and got rejected because of your bad credit, you still have chances to get approved for business funding. Choose the right alternative lender that best suits your business needs. Turn to a trustworthy business loan provider like First American Merchant to easily get approved for business funding. Don’t give up and work on improving your credit.