If you’re starting a small business, there is no doubt that you are going to need extra money at the beginning of your operation. However, if your credit isn’t as high as where you want it to be, finding a small business loan can feel impossible. At SharpShooter Funding, we know all about your struggle with bad credit. That’s why we offer funding options for Canadian businesses, even those with poor credit.
Starting a new business is an exciting venture, but it takes a lot of time and planning to ensure success.
Here are some tips we came up with to ensure that you get approved when you apply for a loan when you have bad credit.
Analyze Your Current Finances
Before deciding what type of business loan to pursue, you’ll want to analyze your business’ finances. Write down a list and answer the following:
- What are your financial needs at present?
- What will your loan accomplish?
- How will you pay it back?
If you are struggling to keep your records organized, many apps can help you stay on track, like InDinero. InDinero is an iPhone app used by many small businesses to track financial reports like profit and loss statements, as well as financial forecasting.
Once you have a sense of your business’ finances, you may be at the stage where you are considering a loan. Once you have made this decision, you’ll want to find a reputable funder, like SharpShooter, as we are experts in small business financing. We pride ourselves on providing funds for businesses whose credit isn’t quite where they want it to be.
If you have bad credit, then you might think obtaining funding is an impossible feat. However, we can assure you that you won’t need to stress over your credit score with a short-term loan from SharpShooter. Unlike traditional banks, we don’t take credit scores into account – we approve over 75% of applications, and make the process simple. Plus, since you’ll be paying off your loan in a shorter period, less interest will be accumulated.
Even though we approve all types of businesses, even ones with bad credit, it’s essential to get everything in order first and take the necessary steps to ensure you get approved. Here are some suggestions for getting small business loan approval.
Some people are hesitant to check their credit scores because they are afraid to face the results. Also, many have the misconception that if you check your credit score too often, the credit score itself will be impacted. As long as you acquire copies of your credit score from a credit bureau like Equifax Canada or TransUnion Canada, your credit won’t be affected. If you’re worried about your credit, don’t avoid putting off looking at a report. You’ll want to be aware of your situation as much as possible so you can see where you can make improvements.
Once you have the report, check it for mistakes. If you find any, contact the credit bureau right away. When you know your credit score, you’ll have a better idea of what loans will work for your business. We suggest a short-term loan, since it will allow you to build back your credit, and give you the possibility of obtaining larger loans in the future if required.
Factors That Funders Consider
Funders look at many factors when determining if you will be approved for a business loan. Many funders will look at your past finances to see if you have made any profits from your business. However, our team is more lenient, even if you have lower revenues.
If you have a bad credit score but substantial annual revenues, this factor could make the process simpler for acquiring a loan. Even if you have good revenues, you might struggle with a loan if you don’t have sufficient cash flow. That’s because traditional loan companies want to ensure that you will pay the loan back eventually, as well as cover your business expenses.
Traditional loan companies will also assess your current debt and evaluate whether you can handle more debt. They also want to know what you’ll be using the loan for, and how this loan will impact your business, like whether it will boost sales.
SharpShooter, on the other hand, will never reject your application just because you have bad credit. Save your time and energy by applying for a short-term loan on the SharpShooter site. We help you reach your financial goals by providing you with funds in as fast as 24 hours.
Also, when you go with a short-term loan option with our team, you get the sharpshooter advantage. We cater to terms based on your specific financial situation, so you don’t have to worry when money gets tight. If your business is off to a slower start or certain seasons are less busy for your business, we will bridge the gap so you can manage your expenses even during times of struggle. We come up with flexible repayment options based on when your business is the most profitable.
Factors That Affect Your Approval
Many funders are much less flexible than we are, and are unlikely to approve your loan. For instance, traditional lenders have stricter requirements and want you to fill out multiple pages on your loan application. They even need you to give them three years of financial statements and tax returns. That means if you’ve been in business for fewer than three years, you’re unlikely to receive a traditional loan. Also, your credit will need to be in good standing and have a strong history. Usually, they require a minimum credit score of 650. Plus, the process can take many months.
If you struggle with bad credit but are keen on starting a new business, you can count on the team at SharpShooter to grow and expand your business with short-term loans.
Our funding is much more flexible and convenient when it comes to your loan, and we’ve made our application process simple for our customers – all you have to do is apply online, get approved, and the money will be sent straight to your business.
Categorised in: Blog
This post was written by sharpshooteradmin