If you are already in operation then you may want to seek a business loan instead. Business loan brokers are especially favored by many small business entrepreneurs mainly because they hold a friendlier attitude towards small businesses than banks normally do. A bank can be quick to deny a loan application, whereas a business loan broker will usually reconsider an application on the grounds that they do not have to worry about regulatory restrictions like banks do.
Borrowers, who are delinquent or have delayed payments by more than 30 days in the past 12 months, will not qualify for a mortgage refinance under the Home Affordable Refinance Program (HARP), despite the loans being owned or guaranteed by Freddie Mac or Fannie Mae.
Considering the large initial seed capital required to finance large-scale projects, businesses have no option other than opting for commercial loans from banks, unless they have angel investors or venture capitalists, backing them up. In this Buzzle article, I provide you with an explanation of what are commercial loans and how they work, in a nutshell.
But, there are times when these banks might not be the best options for landing a needed business loan – either because the bank does not offer the loan product your company needs or because (like most of us these days) you just do not qualify under their heighten standards.
If you are running a business or have recently started a small business set up, it is advisable to get as much credit as possible on your credit cards – but do this at a reasonable rate, because getting too much credit will surely make your credit score fall.