Re: Are bad credit loans available for business purposes?
Posted: Mon Apr 11, 2016 9:01 am
Hi thejoker.
Welcome to the forums.
Bad credit business loan are actually available and these are mainly targeted towards businesses that have had defaults.
Lenders are generally quite strict when it comes to business loans, especially if bad credit is involved. This includes a requirement of having a security property even if you're only borrowing for your business and not necessarily to buy property.
A bad credit business loan is actually all about your security property and it determines the amount you can borrow.
So if you have a residential property as security, you may be able to borrow up to 80% of the property value. If you have a commercial property as security then you may be able to borrow up to 60% of its value.
Please note that you're typically limited to borrowing up to a maximum of $10 million on your loan depending on the strength of your business, loan application as well as loan proposal.
Cheers,
Otto
Welcome to the forums.
Bad credit business loan are actually available and these are mainly targeted towards businesses that have had defaults.
Lenders are generally quite strict when it comes to business loans, especially if bad credit is involved. This includes a requirement of having a security property even if you're only borrowing for your business and not necessarily to buy property.
A bad credit business loan is actually all about your security property and it determines the amount you can borrow.
So if you have a residential property as security, you may be able to borrow up to 80% of the property value. If you have a commercial property as security then you may be able to borrow up to 60% of its value.
Please note that you're typically limited to borrowing up to a maximum of $10 million on your loan depending on the strength of your business, loan application as well as loan proposal.
Cheers,
Otto