In reality, the merchant must understand that lenders are the ones taking the risk by advancing unsecured money. There isn’t a bank or other form of loan or advance that will not require a social security number and an inquiry into personal credit.  If merchants have derogatory credit, open collections, tax liens, or open bankruptcies it is best to be honest with lenders initially as they are more likely to fund your business if merchants are forthright about their businesses than if they find out about it later.   In the end, underwriters find out about ALL past debt and collection accounts and late payments whether the merchant tells the lender or not.  It is better to save the time initially for both parties.  Merchants must remember that they are dealing with private lenders, not large or local banks who are much stricter about lending.  Believe it or not, but merchant attitude and behavior goes a long way in this business.

While banks are concerned with credit, collateral, and business type, most private lenders are more concerned with business performance.  If credit is extremely derogatory lenders may be unable to fund the merchant, or will refer the merchant to their starter programs.  For more information about starter programs click here!

To read more about credit reports, visit the Federal Trade Commission’s Website by clicking here!

To obtain your free credit report now click here!