YOU NEED CAPITAL TO EXPAND YOUR

BUSINESS

D&B's 2014 Economic Forecast showed that 22% of small business owners said increased access to capital would help them expand. In the 2016 forecast, that percentage is now 26% !   

 

View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit                .  

IMPLICATIONS OF BAD CREDIT

Banks typically reject small business loan applications due to bad credit.  

Because business credit reports aren't confidential, bad credit is also a threat to your business.

Potential partners, vendors, and clients can check your business credit report to determine whether they want to do business with you.

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

LOOK FOR THE RIGHT LOAN PACKAGE FOR YOU, IT CAN TURN BAD CREDIT INTO GOOD CREDIT

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

UNDERSTAND PERSONAL VERSUS BUSINESS CREDIT

SCORES Before deciding which loan package to take (and from whom), consider the impact on both your credit scores. There are four ways getting the right small business loan will help improve your bad credit rating.  

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

#1. WHAT GOES INTO YOUR

CREDIT REPORT

Make sure your lender reports your loan and payments regularly to all the right business credit reporting agencies.

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

#2. A CHANCE TO CREATE A NEW

PAYMENT HISTORY

How reliable are you in paying your loan back.

To create a new and improved payment history: • Make payments on time • Even better - make payments early

Most reporting agencies won’t give your business their top scores unless they see early payments consistently.

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

#3. KEEP YOUR CREDIT

UTILIZATION LOW

Business loans and business credit are different.

Business credit = access to cash (think: credit card or line).

Don’t keep it maxed out.

Keep your balance under 30% (on a $50K credit card or line = a max of $15K).

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

#4. GET BETTER PAYMENT TERMS

If you have mostly short payment terms (i.e. less than 30 days), this marks you as a risk.

If your terms are 60- or 90- days, this shows great confidence in you. (Standard terms and their length vary by industry.)

A short-term business loan can help you reset, but only if you consistently make payments on time or early.

Again, be sure your vendors report your new track record to the top 3 credit agencies.

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit

GOOD BUSINESS CREDIT IS GOOD BUSINESS

Using small business loans wisely to improve your credit scores makes paying for money in the future much cheaper.

This makes a good business credit score a financial asset in its own right. If your business is currently held back by bad credit, you can change that with the right small business loan.

               .  View the full article: https://www.unitedcapitalsource.com/blog/4-ways-the-right-small-business-loan-can-help-with-bad-credit