You fear having a bad credit score that could affect you personally, but, if you are a small business owner, you have to worry about your business’ credit score in addition to that.
A bad credit score is, by no means, anything to be proud of. But that doesn’t mean that it will ruin your life. If you are concerned that you won’t be able to secure small business funding to help grow your business, there are other ways to attain extra cash. There are options out there for you that won’t call your bad credit score into the spotlight as heavily as others will. To some lenders, a credit score is not necessarily a reflection of your success and is just a small part of the bigger whole. But just make sure that the finance option you do choose to pursue is a legitimate source that will actually benefit your business’ growth.
Here are a few things that all business owners should know about how capital works alongside a bad credit score:
Going Through A Bank
It is important that you are aware of both your personal credit score and your business credit score when asking for capital. Banks have very strict standards when it comes to credit scores mostly because these scores are how they will judge whether or not you would be a good candidate. If you have a lower business score, there is still a chance that you could secure funding through a bank if your personal score is on the higher side. However, it is a very tough process, especially for startups and new businesses, since you won’t have documentation to at least prove how profitable your business can be.
Pursue Alternative Financing Options
At EIN Cap, our approval process does not rely only on your credit scores. We take into consideration your business’ performance and determine the best fit for you because we don’t believe that a credit score should determine your business’ worth.
We have a variety of financing options available to you that will provide you with the capital you need to continue expanding, despite having a lower credit score. One of our financing options includes a Merchant Cash Advance, where you pay a fixed percentage of your daily credit card revenue instead of a large, fixed monthly payment.
Do not think that your opportunity for growth is hindered just because your personal and business credit scores are low. We have helped around 2,000 small businesses get the capital they need in order to grow their company! If you want to learn more about our financing options, contact one of our experts today.