Bad Credit Loans Business

How bad is bad credit? This can be a very difficult hurdle to overcome when pursuing business credit. In some cases a story exists behind the poor credit and can be discussed with a lender. I have seen loans approved with credit scores in the mid 500’s. I have also seen loans denied with credit scores of 700.

In commercial lending, lenders are more concerned with the content of your credit report then they are the score. Bank credit policy typically indicates a minimum credit score of 640. Often banks will approve policy exceptions for the right deals to overcome lower credit scores. Policy exceptions will make it much more difficult to get your loan approved but doesn’t mean your request is automatically denied.

The best course of action you can take if you have bad credit is to discuss the content of your credit report and the score with your banker. They will determine whether or not they feel confident in gaining a credit policy exception or not. Each lender has a different tolerance for credit scores. Don’t count your deal dead without discussing the story behind a poor credit score. It may surprise you what can be done to mitigate the credit risk.

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