Unsecured Business Loan Bad Credit

I recently filmed a video on how to get unsecured business loans with bad credit, but I wanted to expand on it a little.

Most of the time, people are referring to bad PERSONAL credit, not bad BUSINESS credit. So the answer is simple- If you have bad personal credit, all you need to do is build good business credit to get unsecured business loans. If you set up your business credit correctly, your personal credit should not be a a factor. Now, as I said in my video, this does not happen over night. Unsecured business loans would follow the same requirements as a construction loan, which I discussed in a previous video. It would generally be handled as a bank line of credit and the current lending criteria for such a bank loan would be: over 12 business creditor accounts reporting favorably with a 6 month minimum payment history on those accounts. In addition, an 80 Paydex score, and two years in business from the date of incorporation.

But there is another, more creative solution to this problem. If the small business owner has build perfect business credit from the ground up, as I teach, than within 12 months they would have acquired several cash credit cards. What are cash credit cards? Visa, Mastercard, Discover, AMX. This is opposed to vender credit cards such as: Home Depot, Officemax, etc.
Do you see where I am going with this? If you have an unsecured business credit card with a $50,000 credit limit, is not that basically a bank line of credit? Sure it is. And it is much easier to access than having to go the traditional route of getting a bank line of credit. So as a much quicker solution to the question is to get business credit cards without personal guarantees, which is exactly what I teach in my free 5 day eCourse for small business owners. If they follow my step by step plan of attack, they should have close to $100,000 in unsecured business credit lines.

As an added benefit, unlike personal credit, the more one uses their business credit, the better their business credit gets. You have probably heard that in order to have excellent personal credit, one should not use more that 30% of the available credit, right? Well with business credit, those rules do not apply. The more you use, the better your score gets.

If you found this inside information helpful, I have put together more video tips as well as a Free 5 day email Course on how to do establish perfect Business Credit from the ground up. It is a step by step, from A to Z eCourse on how to do it right the first time. I also include the fantastic company that successfully cleaned up my personal credit for me. They really were a life saver. Just visit my website at: http://www.BuildBizCredit.com for all of the Free info.