Having a bad credit history used to be a fairly serious problem as all of the main stream lenders would be aware of it and would almost certainly turn you down on any future application for a loan. Sadly, such thinking has seen a great deal of businesses who had a bright future, collapse through lack of funding. It is quite tragic, that many such companies had a fantastic opportunity to really go somewhere, but were held back by a possibly completely unrelated matter somewhere in the past. And if the banks wouldn’t lend you money, you were unlikely to get it anywhere affordably.
The Market Has Changed
Technology has impacted the financial industry more than many others, a point that seems to have left the banks falling somewhat behind, in an industry they have been used to dominating. Advances such as Blockchain technology and crypto currency are becoming increasingly commonly heard terms, and the speed and cost of transactions around the world has fallen dramatically. This reduces the overhead on obtaining finance from places other than the bank, who are far more likely to listen to your current circumstances, and base a decision on that, rather than something that happened in the past and may not have been entirely your fault anyway.
Newer Finance Options
Traditionally, when you wanted to borrow money, you would visit your local bank and fill out various application forms and then wait in dread while the application was processed, knowing if you had poor credit history, you were almost certain to be declined, regardless of your plans and needs. Had you been successful, you would be offered the banks product, telling you the loan period, interest and monthly installments, which is great, unless of course you wanted the money for three months, not twelve, forcing you to pay additional interest. Today though a bad credit business loan application is very possible due to the growing number of alternative methods of lending, meaning the issue of bad credit is of less relevance to some lending institutions.
Black and White
Traditional financial companies tend to see things in only two colours, black and white. You have good credit history and you are probably OK, bad credit history means automatic rejection. What technology has brought to the financial world, enables lenders today to effectively offer you the full rainbow of options, without the same preconditions. While the bank loan tied you into what they want, alternative lending sources allow you to set out the details of what you are borrowing. You determine the borrowed sum, the repayment period, the interest rate and repayment amounts. Using software which can search through lenders all over the world, you can not only find a lender who will agree to the terms you have chosen, you can also get an answer on it in a matter of minutes.
This means that individuals and businesses are no longer in a position of never being able to get credit again. Instead they have the option to find a truly individually customised financial solution, allowing them to once again participate within the world of borrowing, with deals far more attractive than those available at the bank that may have turned them down.