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What credit Score Is Required For A Business Loan

Approved For A Business Loan | Financial Information | Tiger Finance

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If you’re looking at applying for a business loan, you might be wondering if you’ll need a near-perfect credit score to be approved. In some cases, lenders do prefer to lend to those with a high credit score. However, if you’re after a business loan but don’t have a good credit score, there may still be a way for you go get funded. Private lenders may consider lending to you regardless of your credit score, or you may be able to find a lender whose terms aren’t as strict as a bank’s generally are.

Read on below to find out how you can get approved for a business loan with your credit score.

What kind of credit score is needed for a business loan?

Lenders generally consider a credit score of 680 or higher to be good credit. But the higher your credit score is, the more loan options will be available to you. A higher score also means that you could be eligible for a more competitive rate, or better terms on your loan depending on your lender.

However, if you have a less than ideal credit score, there are still options available to you.  A private lender may be more willing to lend to someone with a lower credit score than a bank would, and may be able to work out a beneficial loan for you regardless of your credit score.

What do you need to apply for a business loan?

Discussing Business Loans Together | Financial Information | Tiger Finance

Unlike regular personal loans, lenders will often require more documentation for a business loan application. You may need to have the following documents to apply for your loan:

  • Personal identification – such as a driver’s licence or a passport will generally work
  • Business verification – You will need to be able to prove your ownership of the business.
  • Financial history – Your lender will almost always want to see how strong both your personal and business finances are. They may need to see bank statements, sales records, and other financial documentation before they approve your loan.

What other factors do lenders consider?

Checking Credit Scores For Business Loans | Financial Information | Tiger Finance

Although your credit score is important when you are being considered for a loan, it isn’t the only factor lenders consider. A lender may also consider:

  • Profit – Lenders may require you to show that you bring in enough money to afford your repayments
  • Time in business – Some lenders may want your business to have a track record of doing business for at least 6 months, although a few years may also be ideal
  • Business debts –Lenders may ask about any outstanding debts in your business’s name.

Your lender may take into account other factors depending on their application checklist. Be sure to check with your lender when you apply for a business loan for what exactly they will need to consider you for a loan.

What can you use a business loan for?

Business loans are capital offered by lenders to businesses. A business loan is specifically intended to help you to grow your business. Like all other loans, it involves the lending of funds which you then repay to your lender with added interest.

A business loan comes in handy if you don’t have the extra funds to build your business yourself. Business loans also come with either a fixed or variable interest rate and can be either secured or unsecured loans. Business loans can be used for most aspects of a business.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their business. We understand that lending criteria from other lenders are too strict, and can stop you from achieving your goals. That is wrong, and it should not hold you back.

How we can help

Our finance specialists can help you find the right business loan for your project. Business loans are a complicated topic, but we will find a loan that makes your dream project that much easier.

If you are one of the many Australians finding getting a business loan difficult, Tiger Finance can make the process simple and pain-free. Contact us today for your initial free consultation with one of your loan specialists. 

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