Loans and other forms of working capital present a solution to Latino small business owner. Options for loans do exist even for those with bad credit.
Borrowers often want the best terms and interest rates on any loans in which they apply.
How’s your personal credit?
Creditworthiness plays a critical role in any attempt to get a small business loan. Lenders will look at the past credit history of any potential borrower.
The lender won’t generate a profit when lending to someone who defaults.
Reviewing your credit history tells the lender what to expect. Whether this is always fair is debatable. If your credit score is low, you should work on improving it.
If you’re interested in improving your chances of getting small business funding – begin by requesting a free credit report annually from one or all of the top three credit bureaus. Read the report to see what the lender looks at when reviewing the application. Better still, use the information to take action to improve the score.
Enhancing your Credit Score
Credit scores change based on financial decisions made month-to-month. After reviewing a credit report, the issues driving a credit score down reveal themselves. If you discover deficiencies, take steps to improve the score. Doing this may take time, but doing nothing leaves a bad credit score in place. Start working immediately on fixing the credit rating. Hire a professional service if necessary. Professional credit counselors or repair specialists may provide guidance towards reversing a difficult financial situation.
Working with the Lender
A borrower shouldn’t remain passive when dealing with a lender. Often, most lenders enjoy a proactive borrower, who is willing to address situations and provide information to support their case. If a lender is unsure if you can repay the loan – try to look at what documents you can provide the lender.
For example, consider sharing a P&L, A/R and Tax Return, in order to show the strength of your business. If you feel these documents support your point, consider proactively sharing them with the lender.
Business Loans for Latino Business Owners
Delancey Street is proud of the fact we support the Latino community. If you are interested in getting a business loan, please consider reaching out to us. We have many bi-lingual speakers, who are available to help you get a business loan.