3 Things Business Owners Don’t Know About Bad Credit Business Loans

Getting a bad credit business loan may seem like an impossible task being a business owner due to the restricted credit environment today. Trailer loans Canada have almost being wiped out for owners with bad credit rating. Generally, the best option for such business owners to get a loan is the one backed by the federal authorities and also a reliable lender. These loans have the most credibility, profitable terms & interest rates. However, most of the business owners don’t really qualify for such loans due to their restrictive requirements.

3 Bad Credit Loan Secrets

To secure small business loan on bad credit rating, lenders reveal some insider tips. The following options are the best ones for business owners who need capital despite bad credit:

1. If You Own Commercial Real Estate – In case you own a building or a business property, then you probably have a good amount of equity. In fact, you may even have a realistic option that is also affordable at the same time. However, it is important for you to determine the real worth of your property. How much you actually owe on it and how much are you looking forward as a loan. The best thing about this option is that one can get the best rate and terms even with a bad credit owing to the equity in the property.
2. If You Have a lot of Equipment – If your business is equipment intensive like that of a restaurant, or a construction company, then you may have a chance to crack a secured equipment loan deal. This loan is available for a 3, 5, 7 or 10 year term along with a balloon payment that is in turn secured against the appraised assessment of the equipment in possession to keep your business in operation. $100,000 is generally the minimum amount of loan in such cases. The rates and terms are also fairly reasonable, but the process may take 30 days or more.
3. If Your Business Accepts Credit Cards – This option, also known as ‘merchant cash advance’; is certainly the quickest of all methods. This method has the ability to put the required funds in your hands in just a week’s time. These loans, which are technically called as ‘advances,’ come from credit-card processing companies or merchant cash-advance companies. While one can get their hands on the funds real quick, the exorbitant rates and huge upfront fees can be a real bummer for some. Moreover, you may even be asked to buy a new swipe equipment or some sort of credit card processing service.

Today, when the market is facing a lot of turbulence, procuring a loan for your business along with a bad credit history can give you a similar experience as if you are ‘finding water in a desert.’ However, if the right strategy is applied and you are able to follow above tips, then you might land yourself a great deal.

We, at Canada Equipment Loan, have unique heavy equipment loans Canada. We specialize in trailer loans Canada for business owners facing bad credit. Contact us NOW, and we promise to get you a loan for your business in absolutely no time.