A bad credit score doesn’t have to be a debilitating facet of your business powers. In fact, many truck business owners are able to navigate the sensitive matters surrounding bad credit and still be able to come out strong in the end. If you’ve got big business goals – whether it’s starting a new business or growing an existing one – you’ve got to face a bad credit situation head-on. 97% of the Australian economy consists of small businesses, and small businesses tend to struggle more than large ones. The result here is an economy and lending system that is sympathetic to struggling small businesses and businesses in general. So if you have bad credit, don’t give up! There are ways to go around this fact in an economy like Australia’s.

Before diving into how to work around these things, consider the many business areas where bad credit might affect your ability to thrive:
– You might have difficulty getting a loan for equipment
– If you fall too far behind on revenue, you might quickly find yourself in a hole
– Falling behind on taxes might occur, leaving you in a hole too big to dig out of

If you haven’t run your credit into the ground yet, here are a few things to avoid in order to keep from having a bad credit rating:
– Late payments on credit cards
– Late payments on equipment rental
– Having too many revolving credit accounts at once
– Applying for credit and being rejected repeatedly
– Bankruptcy can be detrimental to business credit and signal the end of a business (Stays on your file for 5 years)
– Payment defaults
– Court summons on a debt goes directly on your file and looks terrible

All of these things can rack up a serious credit problem. And a credit problem can mean that you’ll join that 60% of businesses that don’t even make it 3 years in this economy. To see where your credit is at right now, Equifax, Dun & Bradstreet, and Experian are the three companies you’ll want to request a report from. If your business is still struggling to stay afloat, there’s always hope.

Alternatives to credit

Bad credit loans are always out there for businesses. As we’ve seen, many new businesses struggle to stay afloat in Australia, so it’s not uncommon for bad credit lenders to rise up and try to save some of these businesses from obsolescence. They do so by offering very high interest, short-term loans that can help you get through a jam until your business is profitable again.

Secured loans might be another avenue here. You can use some of your physical property as collateral for a loan, and for many businesses, this means keeping your doors open longer. Secured loans are usually guaranteed to be approved because your line of credit comes from YOUR physical property. While secured loans are guaranteed to be approved, they’re often so high interest and short-term that many struggling businesses don’t want to risk their assets to retrieve them.

Perhaps the best way to crawl out of a credit slump is to actually start paying off your loans, a little at a time. A good debt consolidation company can pay off literally all of your bills and then let you make ONE single payment to them over a long period of time, thus freeing up your mind and improving your credit. It’s a nice middle ground between bankruptcy and running your business into the ground with high interest, bad credit loans.

Consult a financial adviser

No business should be without a truck finance adviser. These experts understand the Australian business climate and lending economy far better than a business owner. If your business is struggling, don’t let it continue. Take charge of the situation today and find out the best solution to your dilemma. This generally involves calling on free or paid financial consultants who can truly look at your assets and debts and help you devise a plan to get out of debt or secure more funding for your business.