Loans Canada Launches Free Credit Score Portal And Is Recognized As One Of Canada’s Top Growing Companies
Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
Most small to mid-sized start-up businesses typically require extra capital within the first few years of being operational. That being said, this situation isn’t unique to any specific kind of business. This is something that happens to almost all new companies, whether it’s to help with temporary cash flow issues, expansion, or to hire additional employees. It is also something that all business owners need to account for and figure out a way to correct.
Unfortunately, if you haven’t had time to establish your companies’ independent credit history or your own personal credit history isn’t quite as high as you’d like it to be, you might find it difficult to get the funding you need to improve and grow your business. In cases like this, being approved for the business loan you need and want can be more difficult than you originally thought it would be. This is why it’s extremely important that you are prepared to face your potential lender and have a solid understanding of what you need from them.
Sit down and re-evaluate your business’s finances. What are your current financial needs? What do you want to do with the loan? How do you plan on paying it back? And finally, ask yourself if your plan can be accomplished without a loan or with a smaller loan? For business owners with bad credit, more often than not, their major concern is that they will be rejected for the financing they need to grow their company. This is, of course, a valid concern as lenders typically want to lend to individuals or companies that have good credit. If after you’ve re-evaluated your situation and still feel as though you need a loan, make an appointment with a potential lender. Discuss with them your current credit situation and ask about alternative options and smaller loans.
Consider looking into a merchant cash advance. If you only need a few thousand dollars due to cash flow issues then this could be a great option for you. A merchant cash advance lender will provide you with a sum of money in exchange for a percentage of your daily credit card or debit card transactions. Your lender will continue to take this percentage until you’ve fully repaid them.
The Government of Canada has been helping small businesses for years get the funding they need. The Canada Small Business Financing Program shares some of the risk the lender takes on when they provide loans to small businesses. Less risk makes it possible for a lender to approve more loans for small Canadian businesses. This program allows:
Check out the Government of Canada’s website for information on The Canada Small Business Financing Program.
If you’re having trouble getting approved for a business loan because of your poor credit you might want to consider a secured loan. A secured loan requires you to put up some type of collateral, typically this can be an asset that your currently own. It’s important that you discuss with your potential lender what type of collateral they can accept and the risks associated with securing a loan. Secured loans are great because they can allow you to get the financing you need but just remember that if you default on your loan you could have your asset seized.
If you’ve applied for a business loan from banks and other traditional lending institutions and you’ve been rejected you might want to consider an alternative lender. Private lenders tend to be more lenient and often don’t even check potential borrower’s credit histories or scores. There are countless private lenders out there who want to help you get the funding you need and who are willing to work with you instead of against you. Do some research and you should be able to find a great lender who can forge a professional relationship with.
Amount | APR | Term (months) | ||
![]() | 1k-300k | Fee-Based: Starting at 9% | 12- 60 | Learn more |
![]() | 5k-300k | 8% – 29% | 6-18 | Learn more |
![]() | 1k-500k | +5.9% | 3-60 | Learn more |
![]() | Up to 300k | 8%-22% | 6-12 | Learn more |
![]() | 5k-500k | - | 6-18 | Learn more |
![]() | 100K + | 6.05% + | 60 | Learn more |
![]() | 5K-100k | 15%+ | 12-18 | Learn more |
As previously mentioned, having bad credit can reduce your ability to get your business the financing it needs. However, this doesn’t have to be the case, with the right tools and preparation, you can still get a business loan.
No matter which type of business loan you apply for, you’ll usually have to provide the following information. Be sure to review your application when completed as any errors can result in your application being rejected.
When you apply for a business loan, there are certain documents you may need to provide during or even after you’ve sent in your application. Failure to provide these documents when asked can result in your application being rejected.
One of the most important things you can do is to not give up, even if you have bad credit. There is an abundance of other financing options out there for you and your business so don’t panic if banks and other more traditional financial institutions won’t lend you the money you need.
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Loans Canada is pleased to announce it placed No. 131 on the 2022 Report on Business ranking of Canada’s Top Growing Companies.
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