New Start or Bad Credit Business Finance
Are you a New Start business or do you have a Bad Credit History and require business finance?
If you answered yes to this question, we may still be able to help you.
New Start Business Finance
You probably will have discovered already that securing business finance is not so easy for a new start business.
As far as most lenders are concerned, a new start business is a business that hasn’t filed at least 1 year of accounts at Companies House – some lenders it may be 2 years of filed accounts.
It’s not unusual for a business owner to have been operating as a Sole Trader or Partnership for several years prior to deciding to incorporate a limited company. This may be classified as a new start, however it is obvious that the business owner has a history in this sector. In cases like this, we work with some lenders who will take this into consideration and will accept previous tax returns as proof of trading.
Even without previous history of running a business, lenders may still consider an application for finance if you have experience gained as an employee within the sector.
If it’s a completely new business, no previous experience within the sector, an application may still be successful depending on personal circumstances of the directors. Is at least one of the directors a UK homeowner? What level of deposit is being put down? What sector does the business operate in?
If you’re a new start business, don’t give up on applying for business finance – get in touch, and we will try and work with you to make the application successful.
Can you help a Business with Bad Credit History?
Yes, on several occasions over the years, we have helped businesses where there is a history of Bad Credit or Poor Credit.
This could be where a director has a history of CCJs.
As part of the lending application, lenders will carry out personal searches on the directors of limited companies – where these reveal a history of CCJ, this may cause problems.
We always ask clients upfront if they are aware of any CCJs or similar which may be on their personal credit history. Where the client divulges this upfront, we will try and work with them to obtain full details and reasoning and where there are stories behind these, divulge fully to the lender at time of application to see if this is acceptable to the lender.
Problems tend to arise when the client does not disclose details of poor credit and the first time we hear about it is when the lender flags this up from a search. In circumstances like this, it feels like the client is trying to hide things from us – not the best for all involved!
There will be occasions when CCJs may appear on a history for things like lapsed gym memberships and old mobile phone contracts when the client wasn’t aware / forgot etc.
The bottom line is, as long as you divulge as much information as you can at the start of an application, we will do our best to work with you to find a business finance solution. The good news is that we have helped many clients with business financing solutions where they have been turned down before, so please get in touch.
Do you only help finance New Start or Poor Credit businesses ?
No, at Business Finance Direct we are a broker dealing with over 50 specialist lenders and our clients are all different. Our lending panel lets us help businesses from a wide variety of sectors to get the finance they need for their purchases.
We can help clients arrange finance for Vehicles, Machinery, Commercial Property and to assist with cash flow fluctuations.
We offer a Free, no obligation service, so please do get in touch and let us help you.