Bad credit business loans are marketed as last resort lending because, quite simply, for a lot of businesses that’s exactly what they are: a last resort. Borrowers get denied all the time, professional or otherwise. When a denial occurs, borrowers often waste time spit- balling the motivation behind the denial. This is the equivalent of playing kick ball against the lending curb. If you waste too much time doing it, you’ll never become financially viable.
Since Advance Funds Network (AFN) has become an expert in bad credit business loans, we’ve decided to help you speed this denial and acceptance process up. That way, you can get back to what really matters: improving the financial profile of your business.
This article will take the mystery out of the typical lender denial.
Once Burned, Twice Warned: What Denial is Really About
People and process don’t always mix well. Why? People have a way of taking that process personally, rather than looking at it objectively. Lending is a good example of this principle in action.
People see a denied loan as a reflection of their leadership skills, planning, and management. There is some truth to that, but denial is professional, not personal. So, instead of seeing it as a performance evaluation, look at it through the business lens. It’s really about: credit ratings and revenue generation. Let’s take a closer look at these factors.
Plan now, not later. Small businesses tend to look at long-term strategy as something the “big dogs” do. We’ve all heard the saying, it’s not the size of the dog in the fight, it’s the size of the fight in the dog. Well, it’s time to view business strategy the same way.
Consider your long term goals the “fighting spirit” you bring to the lender’s table. It tells them you are serious about competing and succeeding in the business world. It also shows them you have a solid strategy - a strategy that is worth their investment toward its success. Have your business initiatives (current and future) at-the-ready at all times. They’re your bargaining chips to gain fiscal support, especially in the beginning.
Any idea what your other bargaining chip is? It’s your credit rating. Sadly, this rating is something a lot of businesses are willing to gamble with in the early stages. That’s a bad idea. When you’re ready to grow, there’s nowhere to go if you’ve sacrificed your credit score. Keep an eye on it at all times.
Investment is all about returns, even on borrowed money. You have to show that you can generate enough revenue to pay the borrowed balance back or the funding won’t be given to you. This is true of secured and unsecured lending. Think about where to invest capital early so your revenue shows.
Decisions, Decisions, Decisions: How to Turn the Fiscal Tide in Your Favor
The good news is bad credit business loans are more flexible. They can even help you rebuild your credit rating. Visit our website for more information on how.
Nurturing Business, Cultivating Hope
