Workable bad credit commercial loans may be achievable for operators that engage specialist brokers Business.Finance to source the most affordable options. Operations of all types across all industry sectors can face financial challenges under all types of economic conditions. The past few years have created a difficult scenario for some, with government support through the pandemic followed by high inflation, consecutive RBA, rising costs and supply chain issues presenting major challenges for enterprises to keep up with their commitments.
When an enterprises falls behind in payments and their rating falls to poor, the challenges can intensify with major difficulties in assessing funding to support the operation to recover. Engaging expert brokers to sourcing funding may offer enterprises in this situation the support required.
Bad Credit Scenarios
Commercial operators can see their rating fall to poor for a range of reasons. The main one being late or non-payments on loan commitments, to suppliers and on regulatory payments such as to the ATO. Lenders report slow and non-payers to reporting agencies after a certain amount of time and this is recorded in the history and may result in a downgrade.
The impacts can be different for say sole traders and self-employed compared with company structures. Larger entities may have more substantial assets and may have a longer previous history of good ratings compared with smaller and newer entities. For smaller entities, the personal financial position and assets can also be impacted.
We work with all sized businesses experiencing a range of scenarios to source possible funding options to support the operation.
Access to the Right Lenders
Ratings and scores are integral to lender assessments of applications and often the guideline between approval and rejection and/or the rate offered. A poor rating makes it harder to access affordable funding through traditional lending channels.
One of the pitfalls for those with these types of issues is trying and trying and trying, making numerous applications, unaware that these multiple applications can be further damaging their score. Funding applications can be reported to agencies and multiples for the same loan can be seen negatively by lenders.
Using a broker avoids that impact. Brokers can source funding options from across a large lender base without affecting their client’s credit score.
The other broker benefit is having access to more lenders and specifically, the right lenders. The traditional, ‘readily accessible’ lending channels, especially the major banks, can have strict approval criteria. They rarely have the ability to vary their guidelines to approve poor score applications.
We are accredited with a large number and wide range of commercial lenders. Our lender panel includes those that do have greater flexibility when approving applications and may make workable offers to low and poor score commercial operators.
Types of Bad Credit Commercial Loans We Handle
We work with operators to secure approval at the most affordable rates and conditions for a range of purposes. These include for heavy vehicles, motor vehicles, business car finance and equipment and for cash flow support and general operational requirements.
If approved by one of our lenders, poor score applicants can select the most suitable funding product to suit their set- up – equipment leasing, Chattel Mortgage, CHP, Rent-to-Own, Secured and Unsecured products. When approved, all the features and tax benefits can be realised.
Rates and Conditions for Bad Credit Commercial Finance
Poor score applicants are categorised as higher risk by the lending market. Attracting a higher rate than would be offered to a good score enterprise. But each application is assessed on an individual basis and the reasons as to how and why a downgraded rating has occurred can be taken into account by lenders.
Special conditions and terms may be expected by poor score applicants as part of any lender offer. These may include an upper limit on the borrowing amount and additional collateral required. Large companies may be in a better position to provide this collateral with existing assets. Smaller operators may need to use personal property and assets as collateral.
Applying for Bad Credit Financing through Specialists
Applications for poor rating funding are best made with an initial discussion with one of our brokers. This enables us to understand the individual circumstances and advise customers of prospects and expectations for their specific situation.
Prior to requesting a quote or applying, operators may look at ways to improve their balance sheet and situation. Sole traders and the self-employed operators can expect that their personal balance sheet and score to be included as part of the application assessment.
After briefing our brokers as to the requirements, we handle the process of identifying the right lender for that customer and negotiating the most workable solution. With an understanding approach and professionalism, we work with customers to achieve the funding they require, wherever possible. If experiencing difficulties in getting funding approval, have a confidential discussion with us as to how we may be able to assist.
Contact Business Finance on 1300 000 033 to discuss possible options for bad credit commercial loans.
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.