If your personal credit is a mess, but you are trying to secure a loan for a new business venture, it will still affect the initial credit offerings for the business. However, even with bad credit, you have options to secure a loan for your business.
Here are some tips to help make nudge the bank in favor of approving your business loan:
The first step in the process is to write a business plan. If you are not familiar with the formatting, you can either purchase software that will walk you through the process or hire someone to write it for you.
It is imperative that the information is well researched and accurate.
You can put fantasy figures into the business plan, but the bank will sniff them out in a second.
If you have business secured prior to the launch of the business, get the commitments on letterhead. This will demonstrate to the bank that your figures are based on secured business versus projected business.
It will not guarantee approval by any means, but it will give the bank cause for thought as it evaluates the application.
You may also want to secure a cosigner for the loan if possible. There are times when after evaluating all of the information, the bank presents several alternatives.
For instance, they may be impressed with the business plan, but do not feel as though your credit warrants a loan for the full amount.
They may present you with an offer for less money or the full amount if you can find someone else to sign for the loan.
In addition to the above advice, you may be best served to seek out the help of some type of small business loan service.
There are both alternative lending institutions that broker specifically to small businesses as well services that will help you develop your plan and actually have it evaluated prior to submission for the loan.
By taking advantage of these services, you can walk into the loan office fairly certain of the outcome.
