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Starting a business if you have poor credit is possible, but like all startups, it has its challenges. For this reason, it helps to grab on to every posit sure you have as many of the necessary influential factors on side – this includes a good credit score.
Contrary to popular belief, non-existent or negative credit scores aren’t necessarily the kiss of death for aspiring entrepreneurs.
Sure, poor credit in startups can present issues such as:
Whilst these are extra considerations, none of them are a total barrier to you starting a successful business.
One whiff of poor credit can send the big banks running, but there are other options for investment.
Do some research, and find out if there are any investors in your area looking to support a good cause. Their interest rates will likely be much more appealing too.
A bad credit score is generally one which falls below 700 and missing payments is a sure-fire way to send this plummeting.
To start climbing back up the ranks, you need to make clearing debt your main concern. It’ll show lenders that they can take you seriously.
There’s no nice way to say it; this is going to be a long, arduous and challenging process. In order to reap the rewards, you really are just going to have to grin and bear it.
Be methodical in your approach, and take the time to regularly evaluate what you’re doing. It’s ok to make improvements where necessary.
This is where a finance expert can provide valuable input, and help you stay on track.
The fact of the matter is, your financial reputation is already suffering. Don’t make any decisions which make the situation worse!
Jumping feet-first into more debt in a desperate attempt to clear pre-existing debt will do absolutely no favours for your credit profile, or your stress levels.
Play the long game, do everything by the books and you’ll thank yourself in the end.
In a sticky situation such as this, you’re also going to need an ally who knows what they’re doing.
For this reason, we suggest getting an expert on board to guide you in the right direction. They’ll also be able to help you with:
If you’d like some help getting your finances in order or meeting important payment deadlines, call one of the team on 020 3355 4047, or request a free call back.Â
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