CMS Funding Blog

Are you looking for a business loan but unsure of your options? Are you concerned about your credit score? While certain business loans require you to have good credit, this is not the case for all of them.

What Contributes to Bad Credit?

While many factors contribute to the definition of ‘bad credit’, the most important factor comes from your financial past.

Ask yourself:

• Has your business previously had difficulties paying back loans?
• Do you have a large outstanding balance on your credit cards?
• Do you pay your bills on time?

If you’re a business owner who has bad credit, you should know that FICO scores between 300 and 629 are more common than you think. But many traditional lenders still view these low scores as a sign that you might default on your loan payments. According to the U.S. Small Business Administration, 63 percent of small business owners seek funding from big banks, but only about 27 percent succeed in getting a loan. If you’re a member of the majority who gets rejected, you still have options. There are more and more alternative lending sources available to business owners who have a less-than-great FICO score. There are also many work-arounds that allow you to borrow money or establish lines of credit for your business. Here are some that we recommend.