If you have previously dealt with poor credit in your personal life, then getting finance for your business through your bank might be difficult, if not impossible when first starting your company. The good news is that you do not have to let a poor personal credit score hold you back from getting the funding your business needs, with several options for you to consider.
No Credit Check Loans
You can now get short term loans that take your income and expenses, rather than your credit score into account when applying. You can apply loan without credit check now to be in with a chance of getting some funding for getting your business started. While this option is likely to offer you a smaller loan amount compared to others, it’s a good way to ensure you get the funding needed if you are struggling to get accepted elsewhere due to a poor credit score.
Don’t Apply Again After Being Rejected
Being rejected for a loan when you need the money to get your business started can be frustrating, and it can be tempting to just go and apply again elsewhere to anything else that is available. However, doing this can harm your credit rating over time by having too many rejections on your file, which can make it even harder for you to get credit. Instead, wait a few weeks after a rejection before trying again for another loan.
Use Eligibility Checkers
These days, it is easier for you to find out if you are going to be able to get a loan before you go ahead and put in your application for it. Wherever possible, you should use eligibility checking tools that can help you get a better idea of what your chances are and whether or not you should go ahead with the application. Eligibility checkers will not impact your credit rating and are a risk-free way of finding out what your chance of success is likely to be.
Consider a Credit Building Card
If you have a poor personal credit rating, then you might struggle to get a regular business credit card when first starting out. Instead, you might want to consider getting a credit building credit card. This usually has a lower credit limit and allows you to build up your credit rating enough to put you in a better position to apply and be accepted for a business credit card in the future.
Apply for a Small Business Loan
Instead of going straight to the bank, consider alternatives like a small business loan where your credit score may not be checked as stringently. Small business lenders offer financing to all kinds of businesses and business owners, including people with a poor personal credit score who want to start their own business.
Having a poor personal credit rating can stand in your way when it comes to getting the funding you need for your business. But the good news is that there are several alternative options to consider that could help you get the finance that you need.