If you are a business owner who wants to expand his/her business through the help of working capital loans, then you might be aware of the proceedings pertaining to a bank. A bank works under the guidelines given by the government and are obliged to follow all the bureaucracies that have plagued the banking business for centuries. And one of the biggest problems in a system as this is the fact that they do not provide business loans with bad credit.
Good credit is the holy grail of bank loans. Without a good amount of past credits, your loan appeal will be rejected no matter how many times you might apply. Credits are a way of determining how much of a risk it is to give someone a loan. A good credit means that you are bankable and have a history of keeping up with your books and pay your bills and loans on time.
But for God’s sake, if you have bad credit, heaven hath fury on you. You are no longer viable to be called a workable risk. You are but a liability, too much risk for any bank to give you any kind of a loan without being aware of how credit works in the business industry.
Bad credit and business
Business loans with bad credit are not supposed to be a huge deal for the following reasons:
- Business is a volatile field of work where trends change instantaneously. Anyone can fall victim to this fastidiously changing trends of the business world. If every business owner refuses to work with anyone with a bad credit, the business industry will never survive. And so ‘credit’ in business is as important as oil is in the solar power industry.
- Banks hedonistically are stern about using credit as a basis for choosing who to give a loan to or not. Bad credit business loans are still as big of a no as it was a hundred years ago. Even though the financial system and position of the world a hundred years ago have shifted dramatically. With today’s hard hitting financial crisis (which are caused by banks themselves) have left a rise in inflation which has affected millions of people, and guess what, their credit too.
- Finally, the world is evolving and changing at a pace that is unmatched and unpredictable. At any moment, a revolutionary technology can appear and disrupt the entire chain of businesses, hence affecting their credit. Case in point, the invention of cars: Before cars, there were entire industries dedicated to feeding, serving, and implementing horses. But in just ten short years after cars became common, there was no one taking a horse to work anymore. Such unpredictability makes rejecting business loans with bad credit sound very counter-intuitive.
As we can see, bad credit should not be a reason for denying anyone a loan. Granted, there are some people who genuinely do not pay their bills and loans and are real risks to obtaining said loan. That percentage is so small today, that it does not really matter anymore! Most of the people living with bad credit today are created by financial crisis and technology disruptions that they never had any part to play with in the first place. So, why must anyone suffer because of outdated and archaic rules?
The answer is that they should not! And so, if you must get a business loan with bad credit, then you should not just focus on banks, which will not change from their pompous way and are also soon to become obsolete (Technology giveth, and technology taketh away). And so, you need something better, another way that is designed especially for business owners like you, to help you with your financial needs.