Getting a bad credit score is not the end of the world. Every business at some point experiences this struggle. What you are able to do to get out of this type of bad situation is what defines your ability to navigate through bad times, thus that’s what it will make your business a foolproof operation. Also if you are one to bring out a positive experience out of everything that could go wrong, getting a bad credit score is the chance to manage your finances with a lot more discipline than you previously did as well as a chance to learn some restraint and self-control when it comes to ways to spend your company’s money.
There are a number of things you can do to handle your business during a period of bad credit, either on your own personal account or by managing your company finances using smarter strategies. Let’s take a look at some of them.
Get More Money
I’m willing to bet that the first thing that crossed your mind after reading that headline was something along the lines of “what kind of hellish advice is this?!?” but as the first step to getting your company finances on track is also the one that makes more sense. A bad credit history doesn’t mean you are automatically denied financing by credit companies, banks or loan agencies. Some reliable financial institution do offer bad credit business loans for SMEs. A lot of these organizations are willing and ready to work with you to help you get back on your feet. It all comes down to the size of the problem faced by your business and the amount of money you need. If you need cash on the 4 or 5 figures mark you can always get a new credit card to handle the situation. If you need money on the 6 figures or above that you’ll have to turn to banks or loan agencies.
Bring Honesty to the Table
It may sound like something your grandmother would say. It’s also one of the best advice anyone can give you. In this day and age, nothing remains hidden for long. Technology can bring out every single dirty little secret about our finances since money always leaves a trail record that can be followed by a date. New technologies like Blockchain are being implemented so these records cannot be tampered with in any way. If you need to meet up with a bank or a loan agency the best approach to get the money you need is to be sincere and avoid hiding details. They’ll ask some thoughtful questions, but if you manage to navigate them with grace, you’ll get the help you need to keep your business afloat.
Change your Spending Habits
We can’t stress this point enough to anyone facing the rap brought by bad credit. If you are not willing to change your spending habits you won’t get back on track and you’ll end up in a worst place than when your struggles began. Not only you need to get a hold of the money going out in expenses, you also need to control your payment dates since the ultimate goal of this exercise is to renew your credit history. If you find yourself lacking the discipline to make this work hire an accountant and let him know about your situation, they will offer the best advice when it comes to handling money in a rational way. You’ll notice that many expenses you thought necessary are something that you can let go off and your business will be back on its feet in no time.
Pick the right Financial Tool
As we stated previously the size of your money problem will determine the organization you should approach. In turn, they will help you choose the right financial instrument to get out your financial predicament. One of the most popular choices it’s a microloan, these are usually designed to help small business owners and they can offer grants that don’t go up for more than $50,000. If you are dealing with a bank they will most likely release the money using orders to cover for documented expenses related to your business. The other option is Business Factoring, by using this one you will release control of your invoices to a third party that will cover your immediate need for money but they’ll pay less money than final sum sought by the original debt.
Take this advice into account. It will help you get out of thought spots as long as you are self-aware of what needs to be done.