Dec
30

Securing a Loan even with a Bad Credit Score

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Are you one of the many people who find themselves in need of working capital, but have a history of bad credit scores?  If so, you may find no lending institution will consider your loan application, even for amounts as small as $1000.  Faced with this dilemma, many people run out of ideas on how to get the cash you need to run your business.  Don’t despair, however – spending a little time researching the subject, you may find that you can get a business loan from the very same bank that previously denied your application.

Research and Network

Start by networking with people you know, as poor credit scores are common in today’s economy, and many people are in the same situation.  Through networking, or through an Internet search, you may very well find valuable suggestions on how to get the loan you need.  Many lending institutions understand the economy and are willing to give small business loans to people with poor credit scores but strong working ethics.  You should be willing to offer any assets your business has as collateral, such as your home or other equity.

Get Someone to Co-Sign for your Loan

Alternatively, look for a friend, family member, or business partner with good credit who will agree to co-sign on the loan for you.  Often you will need to offer these individuals collateral (such as a percentage of your business) as well, but this is a small price to pay to get the loan you need and keep your business afloat.  The bottom line; small business loans for business owners with bad credit are available, if you’re willing to do your homework.

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