The 2008 recession was long and difficult, and the much-touted recovery still hasn’t made its way to many small business owners. Small businesses employ a little more than half the workforce, but 80 percent are rejected for business loans.

1. How Do I Get a Business
Loan with Bad Credit?

2. 80% of small business owners
who apply for a bank loan get rejected
The 2008 recession was long and difficult, and the much-touted recovery still hasn’t
made its way to many small business owners. Small businesses employ a little more
than half the workforce, but 80 percent are rejected for business loans. This is in
part because the businesses that survived the downturn came through much the
worse for wear. But it’s compounded by the fact that, after the boom times of the early
to mid-2000s, banks tightened up on lending of all types.
Against this backdrop, many business owners feel that getting a business loan with
bad credit is impossible. It’s challenging, but it’s not entirely out of reach.

3. 3 Different Routes to Secure Money
For Your Business
Copyright 2018 Alliant Business Systems,Confidential

4. Path One: Alternative Lenders
If banks are risk-averse, alternative lenders —
commercial non-bank institutions — may be worth
exploring. You will need to submit many of the
same background information (a business plan,
banking records, and the purpose of the loan), and
will also need to submit to a credit check.
However, the requirements aren’t quite as strict as
you’d find with a traditional lender.
Finally, you’ll have to be especially diligent about
interest rates, fees, and repayment terms.

5. Path Two: Alternatives to Business Loans
If you’ve been turned down by a bank, and you’ve done your due
diligence on alternative lenders only to find the terms too onerous,
there are still alternatives available. Here, too, the results are a
decidedly mixed bag.
 Business credit cards offer less capital at a higher interest rate
 Merchant cash advances borrow against future profits
 Home equity loan is easy to get with equity in your home
 Other options, like crowdfunding, investors, or credit partners
(where you’re effectively “borrowing” a co-signer’s better credit)
also have significant pitfalls.

6. Path Three: Business Credit Repair
You may have been turned down for business credit,
but you need not necessarily stay that way. Your
business credit score is dynamic, meaning that as
your business changes, so too does your credit score.
Once you understand what your credit report contains
and what stakeholders see when they pull your credit,
you can set about making repairs.
While it’s possible to repair your own credit, the
internet is a wealth of often-contradictory information
that could hurt as much as it helps. Then, too,
business credit repair is time-consuming even (or
perhaps especially) when it’s done right.

7. Our Advice
Depending on your business situation, you may
be looking more closely at certain options at
certain times. However, given that your best bet
for long-term viability is restoring your business
credit to good health, we suggest a multi-pronged
approach.
Credit repair is well worth the time and effort. It
can be time-consuming, so it’s worthwhile to start
there, and to start as soon as possible. You can
use the other options on an ad hoc basis until
your business credit is back to a point where
loans and other credit become options again.
Contact us for a business credit consultation to
learn more.

8. 8
THANK YOU!
For more information aboutAlliant Business Systems
call 804-293-2416 or email us at
info@alliantbusinesssystems.com
alliantbusinesssystems.com
facebook.com/BuildingBusinessCredit/

9. BONUS!
9
7 Step Business Credit Building Program
Here are the 7 core steps that make up the simple, effective,
and affordable Alliant Business Credit Building Program.
Businesses that appreciate and implement this approach to
building business credit get funding in a consistent and
predictable manner.
>>Download Your FREE 7 Guide Here<<