Unsecured business loans bad credit
many people come to me each week so are looking to start up a business and are really struggling to get the funding to do this what options do they have? The first question I always ask them is what your credit for like and how much capital you have to put down. Reason I ask this is because most business lenders rely on a couple of things company credit score and has the company been trading a longer than two years. The simple reason they ask this is to establish whether the company is worthy of being lent to because business loans you can be talking of figures up to £200,000.
See me what the criteria is as a company been traded two years but unfortunately your company have poor credit are the reason they properly have poor credit is because they pay are bills banks invoices late this in turn reflects on a credit report does this mean that they can’t get a loan?
The artist this is pretty simple no they can still get a loan but that being said there will be a few hurdles in place. What sort of hurdles? Well as a general rule companies with poor credit will see higher interest rates than those companies with spotless credit. This is to be expected and most companies with poor credit come to understand this is pretty normal.
There are many companies within the market that do specialise in dealing with businesses that do struggle with their credit history as a general what they will require it to make sure that the company can actually comfortably afford to make the monthly payments to their loan if it turns out that the company can do this nine times out of 10 the loan will be issued without an issue.
How do I go about getting the loan?
This is very simple this is easy steps you will take as a business owner, simply fill out the form at the top of this page with your company details and a few small application details we will then search a panel of lenders to see which one suits your credit requirements i.e. which category do you fall into or good credit. Once we have determined where you fall in we will send your details to that lender who will then contact you directly by phone or via email is all part of our free of charge service.
How long does it take to get a loan?
This very much depends on the lender that approves your application as they all have different payout structures and types some may have to make extra checks which will cause a slight delay but as a general rule could be looking between 3 to 5 working days from application to payout.
What can I spend the money on?
There are no requirements or you to spend the money on anything in particular you as the client can choose whether it’s stock wages or team holiday that really doubt yourself as long as you can repay that payment on time the full amount every single month the lender will not mind what you spend the money on
what happens if I do miss a payment?
Some lenders have what’s called a payment holiday option within your contract this being one or two months this means that they allow you to miss a payment that is already authorised with them directly so you need to call them and speak to them explain it you can have an issue with that month’s payment and they will arrange to call it a payment holiday which means you do not need to make a payment that month please bear in mind you might not need to make a payment but your monthly interest will still be charged and will still go to the balance of your loan so this will become payable at the end of your loan, in short this means that your loan will run one or two months extra because the interest occurring on your monthly payments.
If the payment that you miss is not an authorised payment that is a total different matter first of all you will still have to pay the extra interest that has been accrued on the loan this miss payment will also at your balance which will end up in your loan over running and you pay extra back to the finance firm. As well as that should you pay the month after and not make up the missed payment image or credit file will be running in arrears by one month every single month which will in turn not improve your credit score it will only hinder it. As you are already paying an inflated interest rate it is definitely in your interest to make sure your payments are made on full and on time every single month please note should you miss six payments over the course of the loan and not make those payments backup that is classed as default in this can be a very serious matter which will result in a potentially company having to go to court and explain why the loan was repaid there are several steps the company can take to regain the funds that they have lent you that being a charging order against the business or monthly direct debit to come from the business earnings this is opposite down to the judge to decide worse case it has been known that Bailiffs can be called an property can be taken from the business to settle the amount outstanding on the loan this is obviously an extreme case but is very possible.