Most of the time, people are referring to bad PERSONAL credit, not bad BUSINESS credit. So, the answer is simple: If you already had a bad credit loan, everything you need is to build the best corporate credit just to get a business loans. When you will be setting up on your corporate loan correctly, your personal credit should not be a factor. Unsecured business loans would follow the same requirements as a construction loan. It would generally be handled as a bank line of credit and the current lending criteria for such a bank loan would be: Over twelve business accounts for creditor are reporting favorably having 6 months as minimum payment on the accounts. In addition, an 80 PayDex score and two years in business from the date of incorporation are required.
Getting a loan is not an easy process for anyone, but it is made more difficult if you have bad credit and you have not collateral for the loan. When no assets are available to borrow against, this is called an unsecured loan. An unsecured loan with bad credit is an especially difficult situation, but it is not impossible to get a loan with bad credit. Follow these steps:
I recently filmed a video on how to get unsecured business loans with bad credit, but I wanted to expand on it a little due to some good questions that came up.
But there is another, more creative, solution to this problem. If the small business owner had built perfect business credit from the ground up, as I teach, then within 12 months they would have acquired several cash credit cards. What are cash credit cards? Visa, MasterCard, Discover, AMX and so on. This is opposed to vender credit cards such as: Home Depot, Officemax, etc.
As an added benefit, unlike personal credit, the more one uses their corporate credit, the better their business credit gets. You have probably heard that in order to have excellent personal credit, one should not use more that 30% of the available credit, right? Well with corporate credit, those rules don’t apply. The more you use, the better your score gets.
Do you see where I’m going with this? If you have an unsecured business loan with a $50,000 credit limit is not that basically a bank line of credit? Well, of course it is. And it is much easier to access than having to go the traditional route of getting a bank line of credit. So as a much quicker solution to the problem, one would get business credit cards without personal guarantees, which is exactly what I teach in my free 5-day eCourse for small business owners. If they follow my step-by-step plan of attack, they should have close to $100,000 in unsecured business credit lines.
If you found this inside information helpful, I’ve put together more video tips as well as a free 5-day email course on how to do establish perfect business credit from the ground up.