So you don’t have a 700+ credit score and you’ve received a few dings on your credit history… in business, this scenario is sometimes unavoidable. However, you can still get financing via commercial hard money loans even with bad credit – with these tips.
The fact is most people and business owners have some amount of debt, so you are not alone. However, having less than desirable credit can indeed make it more difficult to obtain a loan from traditional banks, which are known to be extremely (and notoriously) conservative lenders. But you can still seek commercial hard money loans from alternative lenders and there are other ways to ensure eligibility and avoid the pitfalls of getting your loan rejected.
Aside from your credit score, there are many things that banks and other lenders take into account when reviewing your loan. A solid business plan is another item that lenders consider. Presenting a clear and detailed outline of your plan of action to develop or grow your business, market your company and most importantly, make money, is a great way to detract from the fact that your credit might be not so squeaky clean.
In a business plan, you can give in-depth analyses and examples of how you plan to earn money or take your existing business to the next level. Include goals for growth, what you want to accomplish with your business and be clear about the strategies in which you’ll use to ensure your business will bring the lender the return on investment that he is looking for.
While a solid business plan is one key way to seek eligibility for commercial hard money loans, there are still other things you can do to up your chances of getting your approved.
That comes by way of reaching out to your creditors. If you have debt – make sure you are keeping up with payments. While rebuilding credit is a lengthy process, making payments on time shows the lender good faith that you are trying to uphold and honor the financial commitments you’ve previously made.
If all else fails, there are still other options to getting commercial hard money loans, even with bad credit.
These types of lenders don’t scrutinize your credit score nearly as much as a conservative bank or conventional lender might. As long as you have some assets to back the loan in the form of collateral, or you are able to show that you will be able to repay the loan, that is ultimately the most important thing you need to improve in the case of getting approval for these types of loans. So while you don’t have to sweat bad credit, it’s always a good idea to try to repair it, as the benefits of having good credit are many.
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.
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