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A very common question that many new small business owners have is, “where do I find business credit loans for people with bad credit?†Because of the recent economic downturn, the economy has hit many people’s credit, as well as their wallets. Luckily there are ways around this. Fixing your bad credit is not as difficult as many people might think, it is really just a matter of common sense and discipline.
The first thing to do is to check out your business credit profile. You will want to know if there are any glaring mistakes that can be easily corrected before you go about patching up your credit.
If you are facing huge interest rates, you are probably best off consolidating your loans. Loan consolidation is best done through small, non-profit companies. Be very careful of this, because most of the businesses that advertise loan consolidation are scams that will end up giving you an even higher interest rate after a rate hike hidden in the fine print. Aggressive solicitation is usually a giveaway that this is not a company you want to work with.
Take your existing credit cards and cut them up. This is usually the way people get themselves into trouble in the first place and it is a good idea to break bad habits in the most direct way possible.
Start paying off your loans, prioritizing the ones with the highest interest rates first. This may take some time and patience, but rest assured that you will find it to have been well worth the effort. Take this time also to go through your personal inventory and budget. There may be some things that you can sell and some redundancies that you can cut back on.
Finally, you can start re-applying for credit cards and start building back your business credit the right way. Building credit is a slow and steady process, but it is a very helpful one, and you will be surprised by how quickly it can be done, and if you hold on to it, it will ensure that you don’t have to look for business credit loans for people with bad credit ever again.
