May 13, 2019

You may already know that when applying for any type of loan, the lender will automatically check your credit score to see how high or low it is. You might also already be aware that your credit score directly affects your chances of being eligible for taking out a loan in the first place. What you may not know, however, is that even if you are accepted for a loan, your credit score can actually affect the terms of that loan.

When applying for a loan, particularly a small business loan, the lender will look at a few different things. This includes a year’s worth of bank statements, the time you’ve been in business, your last year’s tax return, and your credit score. Assuming you have all of these documents and they can prove that you are making money, your debts don’t outweigh your revenues, and you don’t have anything suspicious going on, you will most likely be accepted to take out a loan.

However, just because you were granted the loan, the terms of that loan will look different for everyone, depending on his or her credit score. If you have a low credit score, this tells the lender that you are not punctual in repaying your debts, or maybe that you haven’t been able to raise the money to pay them back by the correct due date. Assuming the lender is willing to give you the loan, despite a lower credit score, you can expect the following things to look different from a lendee with a higher credit score:

1. Payment Terms

If you have proven, by the looks of your low credit score, that it takes you a very long time to pay back your debts, the lendee will most likely shorten the timeframe you have in which to pay the loan back. This is mostly because the lendee wants to put himself and his money “at risk” for as little time possible. With a higher score, you have gained more of the lender’s trust, and he will, therefore, most likely be willing to part with his monet for longer, as he feels he is sure that it will be paid back without issue.

2. Interest Rate

Just like with the length of your payment terms, your interest rate will most likely be much higher with a low credit score. The lender will charge you a higher premium to use his money because you have not proven trustworthy enough in the past. You can probably expect your interest rate to be a few percentage points higher than lendees with a lower score, because the lender is giving you funds with a greater risk to him.

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November 22, 2017

Most people believe that money is the most essential resource. However, that may not always be the case. The most important asset is time. Once it is gone, you can never get it back. You cannot go back into the past and correct your mistakes.

For a lending institution, time in business plays a vital role in the success and growth of the startup or company. There are many benefits of having longer time in business, here are some of them.


Running a lending agency is not easy. Despite your professional and personal competencies, you will find it hard to deal with all your duties. If you find yourself out of focus, you can lose out on good opportunities in an instant.

To get the most out of your business, effective time management is essential. Prioritize the largest and most urgent tasks at the top of your list. Keeping that thought in mind, you will surely improve your service and acquire potential clients in no time.

More clients, more revenue

Not all entrepreneurs today have enough budget to run their businesses. This is why they use the services of a reliable lending institution. With this being said, non-traditional financial providers have a high demand from a broad range of people, including small, medium, or large businesses.

Those who are in need of capital will be careful before making any decision. Even though you may be a trusted company, you could encounter resistances and will need to convince them to take advantage of your services. As long as you provide fast approval, reliable interest rates and minimum requirements from the applicants, you will have many good clients. Aside from that, you can expect more revenues within a short span of time.

Reduce bad credit

In the lending industry, it is difficult to find trustworthy clients. So, to avoid losses and difficulties, they consider credit history. When an applicant was not able to pay his credit in the past, his business loan would less likely be approved. By managing on-time payments, this issue can be avoided, which will benefit the business owners and lending company as well.

Fast process

Every individual who engages in this field dreams to provide an immediate process. Once you are surrounded with by a team of experts and state-of-the-art resources, you can make it come to life. A lot of small business owners would prefer working with you if your process is fast.

Time is imperative without a doubt. Though you can get swamped with applications, inquiries and other problems, try to manage everything smartly. Finish the most significant tasks first before moving on to other less urgent matters. Lead your company well and hire productive and reliable employees.