Most people who own a business want to expand. But when you’ve got a poor credit score and when you’re just about breaking even every month, it’s all too easy to feel trapped.
But don’t despair! There are plenty of funding solutions available even for businesses with bad credit.
At Goodman Corporate, we’re experts when it comes to all status lending solutions. In this post we’ll outline some of the options that are available for businesses with less than glowing credit ratings.
If you’d like any more information about any of these solutions feel free to get in touch. For a friendly and impartial chat with one of our expert consultants give us a call on 0844 310 2818.
All Status Lending Solutions
If your business has been affected by mortgage arrears, poor credit ratings, country court judgements or one too many loss-making accounts, you’re likely to be refused credit by the majority of high street lenders.
But whether you need to consolidate debt or raise extra capital, it may still be possible for you to secure a commercial mortgage. Certain lenders specialise in adverse credit commercial mortgages and while they can be difficult to track down, they can still set your business back down the path to prosperity.
However even if they specialise in working with businesses afflicted with poor credit scores, these lenders will still view your business as a risky investment. This is understandable. After all, credit scores exist for a reason.
As a result, they’re likely to charge you a higher rate on any amount you borrow, which will enable them to recoup their losses should you default on your loan.
A Long Yet Effective Recovery
On the plus side taking out an adverse credit loan at a higher rate can actually improve your credit score in the long run. So long as you can commit to a year or two of regular repayments you may eventually be able to re-mortgage your business onto a standard rate, making significant savings on your interest.
In this way, you can effectively overcome your poor credit history – but of course your recovery is entirely dependent not just on your ability to find a sympathetic lender but also on your business’s ability to make repayments.
This is where getting a commercial finance broker on your side can help. Through developing a thorough understanding of your business they’ll be able to determine precisely how much you need to borrow for your recovery before devising a sustainable long-term repayment plan.
A commercial finance broker can also help you to find a mortgage to begin with. Though many lenders offer adverse credit mortgages, not all of them advertise them openly. A good commercial finance broker will be able to weigh up your options, ultimately presenting you with the perfect all status lending solution for your business.
For more information concerning commercial mortgaging for businesses with bad credit ratings, give us a call on 0333 3583502.