When it comes to starting or expanding a business, the need for Startup Business Loans or Business Loans cannot be overstated. But what happens when bad credit stands in your way? Can you get business credit with bad credit? The answer is a resounding yes! And that’s where unsecured business loans for bad credit come into play.
Understanding Unsecured Business Loans
What is an unsecured business loan? Unlike secured loans, which require collateral like property or equipment, unsecured loans aren’t backed by any collateral. This makes them a popular choice for businesses that lack tangible assets but have a strong operating history. However, these loans carry a higher risk for lenders, leading to stricter credit score requirements.
Credit Scores and Unsecured Loans
What credit score is needed for an unsecured loan? Most lenders require a good credit score (above 680). However, at SME Loans, we understand that bad credit doesn’t always reflect a business’s potential. We are an alternative to traditional bank loans, offering accessible and competitive loan products tailored to businesses with lower credit scores.
“Don’t let your credit score define your business’s potential.”
Our approach reflects the changing landscape of the UK business loans market. In recent years, a rise in alternative finance platforms, like ours, has democratised access to business finance. Such platforms often take a more holistic view of your business, looking beyond just credit scores.
Business Loans with CCJs
A common question we encounter is, “Can I get a start-up loan with a County Court Judgement (CCJ)?” Again, the answer is yes! Here at SME Loans, we work with businesses facing a variety of financial challenges. We provide Business Loans with competitive Rates.
According to statistics from the Registry Trust, in 2021 there were over 500,000 CCJs against businesses in the UK. If you’re among this number, know that you’re not alone. And with the right lender, you can still secure the finance your business needs to grow.
The SM Loans Advantage
At SME Loans, we offer a range of products including Startup Business Loans and more. Our flexibility extends to terms and repayment schedules, and we pride ourselves on offering transparent, competitive Rates. We understand the importance of having finance that fits your unique business model and doesn’t add unnecessary strain.
Conclusion
Overcoming bad credit may seem like a daunting task, but with the right lending partner, it’s entirely possible. Unsecured business loans for bad credit are an effective way to inject capital into your business without the need for collateral. Here at SME Loans, we are committed to empowering businesses, irrespective of their credit history.
FAQ
Can you get business credit with bad credit? Yes, alternative finance providers like JPM Capital offer unsecured business loans to businesses with bad credit.
What credit score is needed for an unsecured loan? While traditional lenders might require a good credit score (above 680), alternative lenders like SME Loans may accept lower scores.
Can I get a start-up loan with CCJ? If you get a county court judgment ( CCJ ) or a high court judgment, it will stay on the Register of Judgments, Orders and Fines for 6 years. Banks and loan companies use this information to decide whether to give you credit or loans.
What is an unsecured business loan? An unsecured business loan is a loan that isn’t backed by collateral such as property or equipment.
For more advice on business finance, explore our Blogs or visit our friends at JPM Capital to learn more about their solutions for Bad Credit Business Loans.
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