A question we’re often asked is: Can I get a business loan if I have bad credit?
Hold on. Who said anything about “bad credit”?
Here at Capify we don’t believe in the term bad credit. Even though the Recession is history and the economy is moving in the right direction, small business owners are still suffering the consequences in the form of low credit scores.
For years, credit scores have more or less been the difference between receiving a small business loan or not. Even if a business is doing well and making money, it’s likely that it would be turned away from a bank if the owner didn’t have a credit score of at least 700. Yes, at least. But is this fair?
John Oliver doesn’t think so.
The end of credit scores?
In of his recent segments on his show “Last Week Tonight,” John Oliver took aim at the credit rating agencies that more or less determine who gets a loan in the U.S. He pointed out that these agencies constantly make errors and misreport credit scores, saying that 25% have “significant errors” in their credit checks.
The point of the entire segment is that consumers and business owners are getting short-changed when it comes to receiving loans. With modern technology the way it is, the fact that institutions such as banks are still relying on outdated credit rating system says is questionable at best.
At Capify, we think that small business owners be judged more on the strength of their business than an arbitrary three digit number.
There are many aspects to a small business, such as sales, revenue and profit that can tell you so much about a business. And that is exactly what we do. We care more about the current state of your business than a number that’s reflective of things that happened five years ago.
We offer small business owners who may have average or below average credit the ability to get the small business financing they need to expand and grow their business. Click here to learn more about our programs and how we can help your business.