Undoubtedly, small businesses in the US are struggling to maintain their cash flow and manage their supply because of financial issues. Many retail giants have recently filed for bankruptcy because they didn’t have the finances to repay the loans.
If your company isn’t making timely payments, you might have a minimal business credit score. A low score can prevent your company from acquiring traditional loans. Keep reading to find out different reasons your business might have a low credit score.
Level Of Debt
The level of debt is directly related to your credit score. The higher the debt, the lower the credit score you should expect. You should focus on debt repayment plans to get your credit score back on track.
Length Of Credit History
Your business credit score examines how long your company has been taking credit. You’ll have a low credit score if your company has not made timely payments and unpaid debt.
Utility Payments
Timely utility payments are an integral factor directly affecting your business credit score. If you aren’t paying utility bills for gas and electricity on time, your score can deteriorate. We suggest you make a payment plan to ensure you’re making timely utility payments.
You should avoid late bill payments because they can remain on your credit report for upto seven years. You should cut down unnecessary expenditures to save money for your utility payments.
Understandably, paying every utility bill on time isn’t feasible for struggling businesses. If your company is tight on budget, you might miss some bill payments and discourage banks from providing you with an excellent loan deal.
Luckily, private lenders understand the financial situation in the US, and they offer asset-based loans that don’t require a high business credit score.
Asset-Based Loans Available For Companies With Low-Credit Scores
It’s well-known that banks don’t provide loans to companies with a minimal business credit score. In such circumstances, private lenders can help you finance your projects. Private hard money lenders like Commercial Private Equity offer specialized hard money loans to companies that are struggling to acquire conventional loans.
They’ve been a part of the private lending industry for more than 75 years, and they’ve helped numerous clients complete financial objectives. Their experienced underwriting team can pre-approve your loan application within one day.
So, what are you waiting for? Contact the representatives at Commercial Private Equity for more details about their private money lending services.