Basic tips to improve your chance for a loan with a bad credit score
With all the problems that we face and all the market fluctuations that occur, keeping your business at the top and surviving the threats of failure is terrifying, to be honest.
Raising capital, generating revenue and keeping your employees and customers happy are not everyone’s cup of tea. Every now and then we fall into situations that lead us into facing financial crisis and low credibility.
It is difficult to get a loan with a bad credit score and if it’s a business loan then it poses as a challenge but there’s always a silver lining and here are three ways of improving your chances and increasing your score:
Prove that you’re worthy- It is important to show and prove to them that you can and have the ability to repay your existing loans and the one that you are taking out. They won’t just give it you on a silver platter and they are definitely going to make you sweat.
Present collateral- The only chance of them approving your loan sometimes is to provide collateral; it can be your house or maybe your business. This gives the lenders a chance to trust you and the chance of getting your application approved grows exponentially.
Get a partner- While applying for the loan, it’s in your best chances if you have a co-applicant with a good credit score because not only the lenders trust them, they’ll indirectly put their trust in you as well. So there is certainly somewhat of a huge wiggle room if you apply with a partner that you trust and the lenders can trust as well.
Nova Scotia has been in this business and knows it is difficult to place your trust on a financial institution and with the stigma that loans face; it is even more of a challenge. We understand the hesitation and we want you to know that we can be your guide and supporter whenever you need it.