On microloans, startups, and bad credit

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It hasn’t been lost to collections firm Brennan & Clark just how difficult things are for businesses this year. Countless companies have folded under the economic pressure that the current global health crisis has forced on everyone, and it seems this will be the trend for the next few years.

What’s worse, according to Brennan & Clark, is that many of these businesses are still in their startup phase, so when folding more likely means incurring a bad credit score. This, of course, does not bode well for new and young entrepreneurs should they try approaching financial institutions in the future to secure loans for future businesses. However, there are still ways for entrepreneurs to secure funding for prospective businesses legally.

One of these ways is through microloans.

Microloans may be the best solution for funding for a business venture for people with bad credit. These are alternative financing options designed specifically for small businesses. And while these loans are considered small by banking standards, they are still proven to be of immense help for business owners who plan to get back up.

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Brennan & Clark mentions that sometimes pulling out a microloan has a few bonuses in store, such as tech support and training programs from nonprofits that function as intermediaries for loans. Moreover, applying and securing microloans is easier as they are generally less restrictive compared to banks.

That said, Brennan & Clark still mentions that business owners provide legitimate explanations as to why they incurred bad credit in the first place.

Brennan & Clark is a recognized leader in the commercial collection industry with its nearly 40 years of deep thinking, talent development, process refinement, and technological advancement. For more on the company and the services it offers, click here.