For many women in business having business credit services can be the determining factor of whether there business survives past the first year. This is because many of the big established financial institutions are wary about lending money to women. It becomes even trickier when the company has no set of established credit history because one has to use their own personal credit background when applying for a loan. Qualifying for a small business loan as a woman with bad credit is almost impossible to do as no one is willing to take a chance on you.
There are quite a few things one can do whether you are a man or woman to help you qualify for a small business loan with bad credit. One of the most important steps is to separate your own credit history and ensure that your company’s credit history is separate from your own. You will need to incorporate your company and obtain a EIN number which helps to protect your business from any personal creditors you have. The next important step is to open a business bank account where you should have a business partner co-sign. It might be possible to use the equity in your home if you own it to secure a loan.
There are many government bodies such as the SBA who are willing to help get small business loans for women with bad credit. They provide low interest loans to small business owners who are not eligible for any of the traditional business credit services. They do not provide the funds themselves what they do instead is to find suitable loans and provide the backing. There are a few questions that you will need to answer before you can be given a business loan such as what the money will be used for and if you are buying equipment using the loan you would have to explain where you intend to buy it from and what kind of equipment you are planning to purchase.
It is important when seeking business credit services to ensure that you have all the relevant information. This includes filling out a loan application form that will ask for personal details.
Don’t forget that the lender might require your personal credit report. You will also need to provide evidence of business management experience and a business plan.
- Tips To Acquiring A Merchant Loan Sans The Hassle (debt-consolidation-2u.com)