Is Invoice Factoring Possible With Bad Credit Score?
Are you looking for invoice factoring yet your established business has a bad credit history, and you’re trying to restart a business with a poor personal credit history. In this scenario obtaining finance can be incredibly tough. Nevertheless some lenders do provide loans and factoring to businesses with bad credit ratings
A credit check is one of the first tests applied to prospective borrowers by most lenders and failure often leads to automatic disqualification. and the good news is that if you choose the right kind of loan or invoice factoring for business with bad credit, then also you can repair your companies credit score.
Unfortunately most high street banks fall into the category of lenders who’ll automatically refuse a loan or factoring application when checks reveal a poor credit rating. But that doesn’t mean your regular business bank shouldn’t be your first port of call, especially if you have a good relationship with them. Banks generally still offer the best available interest rates and if you’re prepared to offer additional security (e.g. securing the loan against your home) then this could be the cheapest way to obtain a business loan.
How to Get Business Funding?
If you’ve got a bad credit history you may find it difficult to get a conventional business funding, invoice factoring can help you It’s an unfortunate fact that traditional lenders like banks will consider you too much of a risk to part with your money.
A county court judgement (CCJ) late credit card repayments or non-payment of any loans are just some of the things that will give you a poor rating. Even if you’ve got a successful business that’s doing really well, it’s not always likely you’ll be able to secure the funds you need.
Not to worry if you have a poor credit history. Invoice Factoring is based on your debtor book so lenders are more interested in your customers’ ability to pay than your own financial performance, there are a lot of invoice factoring companies in the uk market that are willing to help business that have poor credit with funding.