Bad Credit Business Loans

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It doesn't matter if your company is a start-up, or has been in business for years, if the company or the Directors/owners have bad credit, securing financing for the company will prove difficult.

Even if the company itself has loans in just the company's name, missing a payment, or making late payments, then affects the company's ability on its own to be approved for future loans.

Not being approved for a loan could prove difficult at a bad time, a time when the company needs some additional funding to grow, or secure that new contract.

The foundation of lending is the ability to repay the loan, and that ability is looked at from a bank and lender's standpoint based on your credit history, and credit score.

If you have no credit history, then you have no foundation or history for a lender to make their decision on as to granting the loan or not.

If you have bad credit, then that foundation is rocky and a lender may not grant a loan based on this previous track-record of poor credit.

There are a couple of things a business owner can do to secure financing for their company even if they have bad credit.


Assets

Pound Coins

If the company, or the owner or Director has assets of value, such as property, or anything of value, shares in a company, savings, etc, these can be used to secure the loan the company requires.

Future receivables can also be used as an asset to borrow against.

The downside of this is that the loan then ties up the asset, or in the issue of using a property to secure a loan, if the loan is not repaid, the property could be at risk.

If a company uses future receivables as a basis for a loan, those future receivables could be taken to repay the loan. This is money that the company would not receive.


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Guarantor Loans

Having someone guarantee the loan the company needs is a great alternative and a way to ensure the company is to receive the loan and funding it requires, even with poor or bad credit.

Using a Buddy Business Loan to finance your company's growth is not based on credit or credit scoring. It is based on the guarantor for the loan.


Benefits of a Buddy Business Loan:

  • A competitive interest rate/APR.
  • Quick approval
  • Bad credit not a problem
  • Money can be available within 24 hours
  • Easy online application
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Representative Example

Borrow
£3,250

Term
36 months

Repaying
£158.57 p/m

Total Repayable
£5,714.67

Interest Rate
41.16% (fixed)


Representative 49.9% APR.

Terms and Conditions apply. Suitable Guarantor required. All loans are subject to status and affordability checks prior to approval. All applicants must be 18 or over.

Minimum period for repayment: 12 months | Maximum period for repayment: 60 months | Minimum APR 49.8% | Maximum APR 49.9%
Representative example: Amount of credit £3,250 for 36 months. Interest (fixed at 41.16%): £2,464.57. Total amount payable of £5,714.67. Representative 49.9% APR (Variable). 36 repayments of: £158.57.