subject: Arizona Business Financing: Business Loans & Bad Credit [print this page] These days it is tough for anyone trying to get a loan. However, Arizona business financing experts state that if you are a small business owner who is trying to get a loan for your company it is even harder. Officials who work with Phoenix small business loans say there are a few things that you must know if you are a business owner with bad credit.
You Should Know...
First of all, if it sounds too good to be true then it probably is. There are millions of people who are affected by bad credit, but Arizona business financing officials state that it is a particularly hard thing to deal with if you are a small business owner or entrepeneur. Most people don't know that it is legal for loan companies to advertise their best rates as long as at least two-thirds of the applicants are able to qualify for it. Arizona business financing experts say this means that there is a 30 percent chance that you will not qualify.
Best Option If You Have Bad Credit
If you have bad credit, your best option is to build business credit. Some people are put off by this idea because it takes a few years, according to Arizona business financing officials. However, if you can run your business without getting a loan immediately, then this is the best option. When you establish business credit it is not connected to your personal credit, so when you apply for a loan in the future your personal credit will not be checked. Arizona business financing authorities list a few simple things you can do to start building your business credit in the short term.
1. Get a business checking account.
2. Get a credit card that is under the name of your business.
3. Invest in a phone that is also in the name of your business.
There is an incredibly important step that some people miss when they do these things. Arizona business financing experts state that you must contact the credit card and phone companies and ask the following.
1. Do they report their accounts to the credit bureaus?
2. If not, are they willing to do so for your account?
If they cannot, then you should continue searching for companies that can. It is highly important that your business credit card reports and phone reports are sent to the credit bureaus.
Arizona Business Financing: Business Loans & Bad Credit
