Bad credit – it’s the iron bars on your gateway for freedom. Bad credit prevents you from opening credit cards, getting a good deal on your mortgage, and more importantly – bad credit prevents you from securing the loans necessary to fund your business. Whether you’re operating an entire fleet or just have your own semi truck that needs substantial repairs, a bad credit rating can completely derail your plans – and your business. Fortunately, there are financing options for owner operators with bad credit.
Take Stock of Your Assets
If you have bad credit, there’s a chance you may need to put up some collateral in order to secure a loan. That means your first step should be to take stock of any assets you have. Make a list of any property, vehicles, or businesses you own. After you’ve made a list, determine how much money you can pull from each. This will give you a rough idea of how valuable those assets are as collateral in the eyes of a lender.
Use Collateral to Secure a Loan
Next, you’ll want to meet with someone that specializes in lending to those with bad credit. They’ll know how severe your situation is, and what options are available to help you secure financing for your semi truck or business. They will want to know what sort of collateral you have – as it can be used to secure a more favorable loan. Ideally, you should strive to work with someone who’s familiar with your business, as they’ll have a better understanding of what type of financing you will need in order to thrive.
Of course, loans aren’t the only way to secure financing for those with bad credit – you can also look for state or federal government grants. Different grants are targeted at different types of businesses – if you’re just starting out, you’ll want to look at start-up grants, for example.
Bad Credit Financing
While bad credit may seem to block you from developing your business, remember that there’s always a way to figure things out – and there’s always a way for people to help you through. Don’t let bad credit stop you from building your business. Many commercial lenders have financing options available for owner operators with bad credit and can help you navigate the process to secure the money you need for repairs and upgrades.