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Bridge loans are short term loans for relatively small amounts that can be used to pay down other debts. It is also known as gap loans and comes in amounts of about $10,000. Sometimes there are different factors that can hold a business owner back from getting as much funding as they might like, even with our considerable resources. A good credit score goes a long way, but for established businesses, revenue plays a roll. Without at least $50,000 annual income, a personal loan may be out of reach but a bridge loan can come into play nicely.
Credit card debt is another big factor in loan approval. Maxed out credit cards can bring an otherwise good credit score down, even without missed payments. Credit bureaus like to see a utilization rate of 30%. If more than 30% of a card’s limit has been used, as is often the case when running a business, this can slow down the process of getting more funding. What should one do? Well, a bridge loan can be approved faster and be used to pay down the existing credit card balances. Now that the debt has shifted, further funding can go forward.
We understand the intricacies of balancing debts to help you get approved for business loans in Utica. There are cases where rejected applications can be negotiated into approvals, and this is just one example of that. Without credit card limits holding back your application, there is now the potential to get a larger loan to cover the expenses you need for doing business, and repay the shorter bridge loan. However, standing between the obstacle and the goal is yet another consideration.
Once credit card debt is managed, credit bureaus need to be updated before credit score moves upward (the ultimate goal to getting a good business loan). Credit bureaus re-evaluate credit scores only once a month. Our partners have the resources and the knowledge on how to get bureaus to re-do your credit score sooner. If the re-evaluation period is going to take several weeks, we can help you shave that down to several days. Higher credit scores will make your application to the network of lenders we use look much more attractive.
Now that credit cards are no longer holding you back, more options are available for funding. Personal term loans with interest rates as low as 7%, no interest loans, business funding, and lines of credit are all open. Trust our team to also be able to steer you in the direction of 0% interest credit cards. Even if your business is brand new, a no interest or low interest loan is not out of your reach. Find out how we can help you today. Build office space, expand, afford new equipment, and more. The possibilities are endless when capital is at your fingertips.
Don’t think you’re in the position of needing more money now? Consider the possibility of a disaster in the future. When money is short and the business is in dire straits, do you really want to go hunting it down loans? It is always better to be prepared. Find out how much you qualify today. Apply now and get your no obligation call from a representative.