Hello, my name is Emily Gasner, and I’m with Working Solutions. I’ll be talking about howto obtain a business loan with less than perfect or bad credit. If you actually go to a bankand try to get a business loan, they’re definitely going to run your personal credit. So thehigher your FICO score, which the score can be from three hundred up to eight hundredand fifty, the better for your business. But what if you’re on the lower end of that score?Oftentimes banks have a cutoff point, where perhaps–and you have to check with each bankon what their requirement is–you might have to have, for example, a six hundred and fortyFICO score or higher in order to apply with them. So find out in advance before they actuallyrun your credit. I think a lot of times it’s tough for banks and financial institutionsto lend to people with bad credit, so I think my number one suggestion would be just cleanup your credit before you actually apply for a loan. What you can do is go to annualcreditreport. com,a website through the government to check your personal credit with each of the threebureaus, which is Trans Union, Equifax, and Experian. Once you find your credit report,make sure you understand what’s on there. You want to make sure that you pay any collectionsthat you’re paying on time, and that you clean up anything that may be errors. You may haveto dispute it with creditors and write letters and keep very good records of that, or youmay have to also dispute it with the credit bureaus and ask them to remove any informationthat’s not correct. So, it takes time, but I’ve seen a lot of people that have been ableto improve their credit so that they have been able to go to a financial institutionand obtain a loan. Now, also, if your credit isn’t that great, there’s also a number ofnonprofit organizations that lend money to people for businesses that you don’t needto have perfect credit. So perhaps you had a bankruptcy a few years ago, but you’ve beenclean on your credit since then. So research into the organizations in your local areathat might be providing business loans and find out exactly how flexible they are onthe credit, and ask them if the type of credit you have, and your issues that you had inthe past, will prevent you from getting a loan from them. They also might have otherideas from you on how to come up with other funds for your business that might not necessarilybe loans. Good luck.
How to Finance a Business : How to Get a Business Loan With Bad Credit