You can get business credit for your business despite having bad credit or even if your business hasn’t been established long enough. It is possible, but you need to have large amounts of money available or some assets even if it is just a car. Remember, always make sure to go talk to the little banks in your local area since they are more willing to give loans. Make sure to make the lenders job easier by providing the banks with all the information that they need about your company and any statements from others banks along with profit and loss reports.
Little banks will more often give loans to companies that don’t have business credit established or people who have bad credit. Little banks are pretty understanding and easier to work with to get them to lend some money to you. Here are five ways to get business credit for your business.
1. You can put large amounts of money in the bank. You can get a secured loan if you put the amount of money in the bank to use as collateral against a loan. You usually earn a little bit of interest on the amount until the loan is paid off then you usually get the money back.
2. You can use assets as collateral to get a line of credit for your business. A little piece of property or even a paid off car can get you a line of credit at bank for your company. It is possible, but you just have to take the risk of losing one of those if you default on the loan somehow. Some banks will give you loans for some old cars even if the car isn’t worth much.
3. Use a secured credit card. Secured credit cards are always an option to get a loan and also build up your business credit pretty good without having to wait months. Secured credit cards usually have the spending limit as the same amount that you gave the credit card company. You are usually able to get a regular unsecured credit card with a higher credit limit after your company has shown that it can handle a secure credit card.
4. Some banks are willing to give credit to certain companies if they know for a fact that the company will make enough money to repay the money. For Example, Plumbing and Construction companies usually always receive thousands of dollars during a project and within 30 to 90 days after completing a project. Banks understand that with big companies how it takes money to make a 100,000.00 or more in profit.
5. If all else fails in the situation that you don’t have enough money or don’t have any assets then should get a co signer. A co signer is someone who will make sure to pay the loan if your company defaults on it. It is usually a last resort. If they want a co signer then a bank basically thinks that you won’t pay them back.