Build Better Business Credit and Get Approved for Commercial Lending

One of the first things lenders and brokers look at when reviewing a loan application is credit score. Check out these simple ways to build and restore your credit to garner commercial lending eligibility.

In our personal and business lives, we sometimes can’t avoid the pitfalls that get us trapped into a bad credit score situation. Unfortunately, it can be one of the main reasons creditors reject an application for Arizona commercial lending. Nearly half of all small business loans get rejected due to low credit scores. Maintaining good business credit can also benefit you by helping you get lower interest rates on loans, better suppliers’ terms, additional lines of business credit and it could even help your business grow. Customers can search a company’s credit score and could very well base their choice to do business with you (or not) based on that number.

Aiming for a credit score of at least 680 is a good goal. The magic number is 700 (or higher!), but you don’t have to get fixated on that number at first. Start establishing credit with business vendors, and make sure you pay on time. Keep your public records free of credit “dings” such as bankruptcies, tax liens, judgments and debt collection. A long credit history is a good thing – but not when it’s riddled with ghosts of credit mistakes that can tarnish that history for years to come and diminish your chances for receiving Arizona commercial lending.

Ensure that your current FICO credit information is updated and as complete as possible with the three credit bureaus – Equifax, Experian and TransUnion. Even if you can’t get approved for a bank loan due to your credit score, resist the temptation to borrow from lenders that don’t report to the credit bureaus.

Getting rejected by a bank for bad credit doesn’t mean you should subject yourself to non-credible lenders that don’t report to the bureaus to get commercial lending. There are other lending institutions besides banks that do report to the bureaus but may also have less strict lending policies when it comes to bad credit.

Charging your credit card can actually serve as a beneficial way to establish your business line of credit.

Using credit is a good way to establish a credit history, so don’t be afraid to utilize your lines of credit. However, there is a fine line between using them and going overboard. You don’t want to max out a credit card, so stay within 30 percent max of your credit limit.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.