Obtaining finance for your business can be difficult if you have a bad credit history. Mainstream banks tend to reject applications with poor credit because of the higher risk of non-payment. Fortunately, many alternative lenders have products specifically for companies with bad credit. Listed below are some examples of the types of loans available to businesses with bad credit.
Car finance for people with bad credit is often more expensive than standard finance. This is because lenders charge higher interest rates. However, if you can afford to make the payments, your credit score can be improved. There are different types of bad credit car finance available, and the right option for you will depend on your personal circumstances.
Bad credit refers to a history of not paying bills on time, or owing too much money. This is reflected in your credit score, which is like your financial CV. Your credit score is difficult to identify, but you can check it with one of the three main credit reference agencies in the UK.
One of the first steps you can take in applying for finance with bad credit is to familiarize yourself with the different lenders. Not all lenders are created equal, so make sure you shop around and compare lenders before making a final decision. Some of these lenders will be more flexible than others and may be more apt to deal with your current credit score.