If you’re a business owner suffering from a poor personal or business credit score, acquiring finance can become extremely challenging but not impossible. Traditionally, business loans were provided by banks, who have a somewhat rigid approach to lending. Fortunately, there are many new lenders who have joined the market and which can adopt a more flexible approach even if you have a less than perfect credit history. Lending to commercial clients with adverse credit history is now a viable option and multiple specialist lenders can offer lending on terms that are adapted to your specific circumstances.
What is adverse credit?
Anything that negatively impacts credit score and makes the high-street lenders reluctant to offer a commercial mortgage or business loan is adverse credit. It could be formally recognised by CCJs, or it could just be a missed bill or a late payment. Whatever the size and shape of adverse credit, it can be a stumbling block to lending if not sourced correctly,
If you have a poor credit score, the best way to get a business loan is to apply to a lender that specialises in adverse credit commercial loans. But before you apply, you should do everything possible to make sure your credit score is as healthy as possible to help improve your chances of acceptance and maybe even save money on your borrowing.
Business finance lenders often have different underwriting techniques, but all will be looking and investigating a wide range of factors to help give them an overall picture of the business. This means that businesses are much more likely to be approved for funding compared to when lenders simply look at credit history and credit score to assess risk. Each application is taken upon it’s own merit.
How can we help?
InvestGrow will run through an extensive client breakdown to understand the scenario, then matching lenders who are comfortable with similar scenarios. We have also assisted with planning and worked alongside relevant Insolvency Practitioners to find out the best ways to assist our clients.
What type of business loans can I get with adverse credit history?
Several alternative funding solutions can be customised to meet the demands of your company even with a low credit rating or a damaged credit history. These can consist of:-
- Commercial Mortgages
- Buy To Let Mortgages
- Property Development Loans
- Property Refurbishment Loans
- HMO Mortgages
- Property Bridging Loans
- HMRC Debts
- Asset Finance
- Invoice Factoring
Our personal connections with lending decision makers can help us secure finance for businesses with adverse credit ratings in a number of sectors. For further advice on how we can assist with lending to commercial clients with adverse credit history, please contact us here.