If you wanted to start a business, buy new equipment for your existing business, or expand your your current company to a second location, where would you look to find the necessary funding? It’s highly unlikely that you have tens of thousands of dollars just burning a hole in your company accounts, so you’d have to turn to sources outside your company.

In a recent U.S. Small Business Administration report, “over 63% of business owners attempting to find funding said they most often targeted banks when looking for funding. Unfortunately, the success among these respondents of actually getting a business loan was a low 27%,” explains Marco Carbajo.

This failure percentage is even more drastic among small to medium-sized business owners who have no credit history, or worse, a poor credit rating. Banks that are already hesitant to provide funding for inexperienced entrepreneurs become absolutely unwilling to play ball if the credit history has anything less than glowing news to report. Unfortunately, access to ample amounts of working capital is the single largest roadblock most business owners face when growing their business.

The Commercial Finance Group in Atlanta is dedicated to helping small to medium-sized business owners overcome this issue. Through our unique lending solutions, we offer a viable alternative for entrepreneurs who have been deemed “unbankable” for one reason or another.

Keep reading to learn more about how asset-based lending services from The Commercial Finance Group can help to stabilize your company in times of growth, regardless of your current credit rating or business credit history.

What Does It Mean To Have Bad Credit As A Business?

Although you and your business may be separate entities in the eyes of the law, things are different when you go before the almighty bank loan office to request funding for your commercial venture.

When deciding whether or not they will provide a loan to your small business, each lender has their own set of specific requirements. However, as the U.S. Small Business Administration, your credit score is the ultimate determination of how you handle money, whether it’s yours or revenue that belongs to your business.

“Personal credit scores work for business loans the same way as with any other type of lending, explains Nick Bentley. “Realistically, anything less than a 660 translates to you having a hard time finding an “A” bank lender with favorable terms. A score of 720 or higher, however, gives you a much better shot at an approval with favorable rates and terms.”

If you’ve had financial issues in the past, and your score is currently sitting at 660 or below, it’s likely that traditional lending institutions, like banks and credit unions, will tell you that you’re “unbankable.”

This means that although you’re currently running a business (or have a great idea for one) that’s earning money, the fact that your personal credit score is less than desirable means that banks don’t want to touch you with a 10-foot pole. This is the point when many small business owners want to throw in the towel, but The Commercial Finance Group is here to tell you that it’s not the end of the road.

Can You Still Qualify For Business Financing With Bad Credit?

The answer to this question, as with so many in the commercial finance world, is “Yes, but…”

While there are ways around credit issues, it’s important to realize that you probably won’t find them at a traditional bank. Alternative lending solutions like the asset-based lending solutions provided by The Commercial Finance Group provide a “bridge to bankability.” This means that we can help your business create working capital for itself, without putting you through the long (and often fruitless) bank loan application process.

Asset-based lending means that we allow you to turn your current assets (typically money that’s owed to your business in the form of unpaid invoices) into cash immediately instead of waiting for customers to pay. For a small fee, we’ll take over the responsibility of collecting payment, while you’re paid an attractive percentage of your invoices upfront, and in cash. With the financial experts at The Commercial Finance Group, you’ll be on to bigger and better things, while professional and courteous collections professionals work to achieve full payment.

Contact The Commercial Finance Group in Atlanta to learn more today! We service companies all over the country.