What does having a credit score below the minimum mean?
What is the lowest I can have and why does it vary by lender?
It is when a business or individual applies for a loan or financing and one or more of their bureau scores was lower than the lender accepts for financing. It is the # 4 reason of the Top 9 Reasons why your MCA was declined.
How can you overcome being declined for working capital loan because of a low credit score? Apply for programs that go down to as low as 400.
Call 919-771-4177 for more info.
What is a decline for credit score below minimum?
The business owner’s bureau numbers are below a threshold required by the lender.
Most frequent Questions:
– A lender denied me saying my credit score was below their minimum. Can you still help me get funding?
In many cases we can. We will review what your score is at all three credit reporting agencies. Specifically, we will look at the following:
- What slow trade lines and derogatory information is causing your score to be low?
- Look at your company and use the strongest aspects to match it to available programs.
- Once a program is matched for which you have a strong chance for approval, then apply.
- You will either be approved or if not, we will review and shortcomings in detail with you and develop a 30, 60 and 90 day action plan to constantly improve the company’s borrowing ability
How to get a commercial loan with a credit score below minimum:
Talk to lenders before applying and find out if they have a bottom number requirement and what it is. If your’s is too low, consider other alternatives. Is there more than one owner in your business? If the other owner has better credit, have them apply instead or have them apply first. Contact other lenders until you find a lender whose requirements are not as high.
If your bureau numbers are on the rise, consider waiting to apply. Also, find out if you can qualify for a lower amount. We have programs and tips to put your business in and get approved. Contact us to discuss.
Solutions for businesses declined for a credit score below the minimum and too low for a merchant cash advance, or ACH Bank loan.
Talk to the lenders directly about being declined for a credit score below the minimum. Ask them if you can be approved for a lower amount and if there is another program that may work.
Get a copy of your credit report. The bureau will list the top 4 reasons your numbers are lower. Look at those reasons. Are there any that are wrong? Once you find the ones that are incorrect, call the bureau and dispute the reporting. If your score goes up within 30 to 60 days, you can call the Lender back and have your Application considered again.
Get working capital through other loans
If the options above do not work or you cannot wait, your business can consider other types of financing. Which ones are best depend mostly on your company’s profile. Choices include:
– Monthly Term loans up to 48 months that require the last 2 Years Tax Returns
– Accounts Receivables Financing
– Capital loans based based on Real Estate or Equipment Assets
Finally, with one of the above options, your company may overcome being declined for a MCA Merchant Cash Advance or merchant advance loan for having a personal credit score that is too low or below the minimum required by the lender. The SBA small business administration also has excellent resources on alternative options.