Commercial Loans and Your Personal Credit
October 3, 2008
Is it possible to get a commercial loan with bad credit? Believe it or not this is a possibility that might become a reality if you choose the right kind of lender. Those with bad credit can still invest in commercial ventures with the help of a private loan.
The lending resource you want to go with is private money. Unlike commercial banks, private money is not interested in you so much. Instead, it will look at the project, expected value, income produced and incidentals that increase or decrease the value of the deal.
Assets are one thing private money lenders will ask about. They are trying to minimize risk, so they will want security interests in any valuable things you own. This means you have something on the line which makes them more comfortable giving you money.
In most cases, you will know whether or not you can obtain a private loan within twenty four hours of sending in your application. If your loan is approved, you will then have the money in your hands almost instantly. While you may have to wait for months with a traditional loan, this is not true with a private loan.
Generally, the interest rates on a private loan tend to be higher than those on a traditional loan. However, while a bank might not even consider a bad credit loan request, a private lender will. If you truly believe in the venture that you have in mind, a private loan might be your only option.
A private money loan can also help you in other ways. It will go on your credit report. The fact you have taken a sizeable loan and paid it back is nothing but good for your credit score. In short, your bad credit can be transformed to good.
Make sure to read all the fine print when you sign for a private loan. If you do not understand some of the terms included in the loan agreement hire a lawyer to go over it with you.
Been rejected by a bank on a loan application? Why should you give up on your dreams just because the bank said no? Do not take no for an answer. Go for a private loan instead.
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