automotive financing

A high-risk business loan can be defined as a loan that is granted to a business borrower who has a history of late payments, defaults, missed payments, or a below average credit rating. While the importance of a high credit score, clean payment history, and good overall financial standing are important items to consider when looking to secure a loan, a high-risk business loan may be an option for those businesses who have had some rough patches in the past.

A point to consider is that a business may be considered high-risk based on credit decisions that were made many years ago. The business may now be profitable, stable, and moving in the right direction. The current need for a loan may be to address the wide variety of issues that can inevitably arise when operating a small business.

Why Initiate a Loan Application if You Are a High Risk Borrower?

Businesses that are considered a high-risk to a lender may end up with a shorter-term business loan at a higher interest rate. The important thing to remember, though, is that in many cases, a short-term loan can help solidify the cash flow situation for the business – regardless of the credit standing. Initiating a loan application, even if you are a high-risk borrower, makes sense if the new loan can truly help your business.

How All Business Loans Manages High Risk Business Loans

When applying for a loan with All Business Loans, there are a few key factors to keep in mind. First, credit score is not a driving factor in the majority of our lending decisions, and we have bad credit business loans available. We base our approvals on the amount of sales your business has been recording and not the commonly used FICO score. This allows for a custom-tailored loan offering, as the size of the loan will always be relative to the amount of earnings of the business.

Second, we marry the repayment amount to the amount of sales your business records each day. That way, slow times demand lower payments and high sales times allow for a larger payment. This revenue-based repayment process makes for a safer business loan. All Business Loans wants to be your lender if you’re seeking a high-risk business loan today.