Once upon a time, bad credit meant it was almost impossible to secure a short-term business loan, let alone long-term business financing. But not anymore.
In fact, arranging long and short-term loans (secured against property) is just what we do. We help people achieve their business goals.
But sometimes those goals have been dampened by a bad credit experience. And while a bad credit rating used to be the death knell for small business owners, that’s no longer the case. Non-lenders such as Strive Financial, free from the restrictions of traditional thinking and long-held, but antiquated, lending methods, prefer to pitch in when others are bailing.
Here’s how Strive Financial views – and deals with – bad credit.
What do we mean by ‘bad credit’?
According to Investopedia, bad credit ‘refers to a person’s history of failing to pay bills on time, and the likelihood that they will fail to make timely payments in the future. It is often reflected in a low credit score. Companies can also have bad credit based on their payment history and current financial situation.’
There are many reasons an individual or business may have bad credit and be unable to secure a short or long-term business loan. A business goes bust, they default on personal bills, loans or credit cards. Even bad advice from divorce lawyers advising people to stop paying can end up costing you on your credit report!
The Strive POV: we don’t do a credit search, so we don’t know – or take into consideration – your score.
How do I find my credit rating?
Everyone’s whose applied for finance has a credit report. For a free copy of your credit report, download a credit app or contact one of the following:
- Equifax.com.au or call 13 83 32
- Illion.com.au or call 13 23 33
- Experian.com.au or call 1300 783 684
- Tasmanian Collection Service – tascol.com.au or call 03 6213 5555.
If your report is inaccurate, check the Moneysmart website for ways to fix it.
Did you know, there’s a small penalty each time a formal enquiry (lender, banker etc) is made on your credit history. And these searches show up on your history – as will the success of your credit applications.
The Strive POV: when you apply for a short or long-term business loan (even with bad credit) with us, it doesn’t affect your credit score.
I’ve got bad credit, can I apply for a business loan?
Yes! Apply for the loan. We use your security as our risk mitigation, as opposed to your credit history for normal lenders.
The Strive POV: if you have solid security assets, you can borrow from us.
How much can I borrow?
The Strive POV: you can borrow same as anyone else – from $15,000 to $3,000,000.
Will I need to provide extra documentation?
We know you’ve got better things to do with your time, so we keep the paperwork to a minimum. Just a two-page application form and evidence you own the property – such as a rates notice – and you’re on your way. We don’t ask for financials, tax returns or bank statements.
The Strive POV: we don’t care if your business documents are a mess. And we can get your bridging, medium or long-term business loan into your bank faster with less documentation.
What security will I need to offer?
Typically, you’ll need to offer a first or second mortgage on a property you own. Depending on the loan type, we also accept unencumbered vehicles such as boats, cars and trucks.
If you have bad credit and need a short-term (bridging) business loan or longer-term financing, Strive Financial are here to help you save the day or seize the moment. So call us today!
When it comes to business, cashflow is critical to success. This means having access to cash when you need it to buy stock, pay employees and cover regular bills and expenses. That’s why a small business experiencing cashflow issues – no matter how temporary – can quickly become a big problem. But what if you have the cash, it’s just tied up in your home? That’s an easy fix – you can apply for a short term loan secured against a property.
In other words, you can take out a second mortgage on your home.
There is a lot of stigma attached to short term lending. And with good reason in some cases. But, the reality is that almost every business at some stage will need access to finance – and that’s not something to be ashamed of. Short term finance can help businesses react to changing situations or take advantage of new opportunities.
On average 50% of new businesses fail within the first five years. In their time of need, many small businesses will turn to brokers like you for guidance – and your help could get them out of a tight spot. In fact super fast, short-term business finance did just that for one of our clients.