A rich cash flow is the blood and bone of a business organisation. Whether you plan to expand your operations or hire new staff or buy new furniture, car or inventory for the upcoming business season, every act requires additional funds. Start-ups and small size businesses are indeed always on a lookout for cheap short-term business loans.
Conventional lenders are rarely interested in borrowers with less than perfect credit score. However, with bad credit rating, you should look out for private companies interested in extending cheap loans to businesses with poor or short credit histories.
You need to find out hassle-free ways to reach the lenders providing bad credit or no credit loans to small businesses.
Contact a loan broker
Brokers are loan advisors and not the loan sellers. You can contact them a by simply filling up a form on their website. The form would ask for your identity details and approximate loan requirement. After submitting the request, the broker would get in touch with you.
As the broker contacts you, share your requirements clearly. They are experts in searching for tailored loans and thus you should know how to delineate your requirements clearly to a loan broker.
There are several benefits of contacting a loan broker:
- A broker helps you find personalised loans on time. They can search for rare deals which are difficult to search on own.
- They never compel you to buy a loan. You can make a no obligation decision and choose the lender who offers the most desirable deal.
- Whether you lack a good credit history or have no guarantor to support your loan application, a broker can assure the loan help.
- Many brokers also extend loan repayment counselling. You can use the advice to ensure successful repayment of the loan.
- You can avail entire broking support online and need not visit any broker physically.
- No credit check marks are raised on your credit report when you search for perfect match loans using a broking service. For they run multiple loan queries with several lenders who make soft queries. Thus, when a broker searches loans for you, no footprint is made on your credit report.
Being a small business when you apply for short-term business loans keep following this in mind:
Contact a loan broker that abides by FCA guidelines. Always deal with a finance company that abides by FCA guidelines and sets transparent terms. A legitimate broking company would not charge you hidden fees for its broking service. Most of the brokers do not charge a broking fee and those who do, state the terms clearly beforehand.
Borrow only for the amount you need. A loan is a loan and should thus be restricted to an affordable level. You should never borrow for more than what you require as it would only add the additional pressure of repayment.
Have a repayment plan. It is important to have a backup plan to repay loans on time. Even a single delay in the loan installment can immensely hurt your score, so beware of the due date and use automation for timely repayments.
Repay and build a good history. Repaying small loans on time is one of the quickest ways to build the credit worth. Being a small business, you should always intend to repay on time and build your score.