Are you a small business that is looking to expand internationally and hence needs to take out a loan to achieve your dreams? If you’re worried about your bad credit score, you should keep reading, as this blog will help you learn all about business loans with bad credit.
It is pretty shocking to know that 93 per cent of businesses in Australia have never even accessed their credit score! What’s going on, mate? Hence, you aren’t alone on this boat.
What is the eligibility to get a business loan?
The first thing you need to know before you apply for instant bad credit business loans is the eligibility criteria for even applying in the first place. A business loan is offered to people who are running a credible business and making a profit.
While all banks have their criteria, generally, lenders evaluate the amount, the tenure, and interest rate before they accept or decline your offer. Here are a few things they look at before offering you a loan:
- What type of business are you running?
- What has been the turnover of your business?
- Is there any profit that has been made?
- What is the cash flow of your business?
- What is the track record of your business?
Is it possible for you to get a business loan with bad credit?
The most pressing question must be, can you get business loans with bad credit? The short answer to this question is yes! Isn’t that a relief? In all honesty, you can acquire a business loan even if you have a poor credit history.
In general, you should be able to get a loan ranging from AUD 2,000 to AUD 1,000,000, depending upon the kind of business you run. In addition to this, the term of the loan can range anywhere from 1 month to 36 months!
Another thing you can do is request your current lender, if you have one, for a business loan. If you can explain your situation to the bank manager or lender about your past mistakes, they may be more open to lending you a business loan with a lower interest rate.
However, it would be best if you started building a good credit history now so that you can apply for loans in the future too.
Where can you use the loan in your business?
Once you have acquired the funds, the next step would be to figure out where you can apply these loans to. Well, there are various places you can fruitfully employ the money to. Here’s a list of a couple of things you can do to make the most of your funding:
- You can launch a new business or start-up
- You can use the cash to pay any urgent bills or suppliers
- You can buy more inventory so you can prepare for your peak selling periods
- You can upgrade your business by investing in more equipment are acquiring more capital
- You can launch new campaigns to attract potential customers to your business
Now you know all there is to know about business loans with bad credit. Having a bad credit history should not stop you from applying for the same. So, go out there are improve your business’s opportunities now! What are you waiting for?