How to get loans with bad credit

Getting access to the capital you need for your business to grow can often be much more difficult than it needs to be. Navigating the financial ecosystem of credit scores, different types of loans, and the variety of different lenders can be time-consuming and frustrating. With the myriad of options available, business owners need to be smart about which type of financial solution they seeking out. Unfortunately, there is no a “one size fits all” approach that will work for every situation. The “best” type of loan is truly dependent on the business context.

Working with a trusted financial advisor is one of the best ways to develop an accurate understanding of your business’ needs and the types of solutions available. A history of poor credit can often complicate things further, making it even more difficult to keep your business running. At Peach State Solutions, we have experience working with small and medium-sized businesses across a wide variety of industries and are dedicated to your success. At Peach State Solutions, we prefer to work with credit scores around 600 but are open to working with credit scores from 500+.

With a bad credit score, getting a loan at more traditional financial institutions can be nearly impossible. Fortunately, the alternative lending space has seen rapid growth in the past few years and is perfectly suited for meetings these businesses’ needs. At Peach State Solutions, our criteria for evaluating clients place a strong emphasis on flexibility. Our minimum requirements are at least 3 months in business, a credit score of 500+, and monthly revenue of at least $2,500. We offer term loans, equipment financing, invoice factoring, and credit repair, amongst other services. Credit monitoring and repair is an essential part of managing and maintaining your business’ financial health. While being proactive about your business’ credit is always best, Peach State Solutions offers credit repair options to help get your business back on its feet and get your credit to where it needs to be. Building your credit will help increase your access to capital over the long term and make it easier for your business to grow for decades to come.

In terms of loans, term loans are some of the common and useful financial solutions for small businesses. While interest rates depend on each individual situation, our term loans have rates that start as low as 2.5%! Term loans are loans for a fixed quantity of money repaid over a predetermined schedule. The length of the total duration of the loan is called the “term,” hence the name term loan. Term loans can be valuable tools to business owners, especially for buying fixed assets. Fixed assets are assets bought for long-term use that cannot be easily converted to cash by the business owner. Some relevant examples of fixed assets are buildings and equipment. Term loans can have either fixed or variable interest rates, and the length of the payment period depends on the amount of money and the needs of the client. Short-term loans can be useful alternatives to small businesses that did not qualify for lines of credit. For more information about lines of credit, and if they are suitable for your business check out this article Here.

Invoice factoring can be another good option for businesses with poor credit. Invoice factoring works by taking unpaid customer invoices and converting that into cash that you inject directly back into your business. This allows business owners to cover expenses like payroll and other costs without customers having to pay the invoice immediately. The benefits of invoice factoring are clear, you get fast access to cash while giving your customers flexibility in terms of their payment schedule. However, it is important to understand that invoice factoring is suited to certain kinds of businesses. Retail businesses are generally not well suited for invoice factoring because individual customers tend to pay their invoices relatively quickly, which diminishes the value of invoice factoring. Businesses whose clients are largely other businesses tend to find invoice factoring more useful because their clients are more likely to pay an invoice over longer periods of time. Invoice factoring is also advantageous because it gives businesses owners access to cash that does not depend on credit score the way that loans are. Consequently, invoice factoring can be a valuable option for businesses that might not have the best credit but has a lot of transactions. At Peach State Solutions, we offer invoices factoring services for 30, 60, and 90 day invoices.