The economic downturn has made the need to keep a constant cash flow going more important than ever. However, in turn it has also made it more difficult, with many businesses unable to get the loan they vitally need because they have bad credit. It might be that you’ve failed to pay a debt in the past simply because one of your customers has failed to pay you what they owe you, or it may be that you’ve got yourself into a sticky situation following a dip in sales.
The banks and the government signed a deal to make it easier for SMEs to get loans, however it doesn’t appear to be working. Banks are unwilling to give loans for bad credit, and even with a good credit history, the charges can be completely unaffordable. Consequently, since the deal was brokered, 2011 saw a fall in the supply of credit to businesses.
Banks are completely inflexible and work from a computer system rather than getting to know the customer and decide if loans for bad credit might actually work for them because of their circumstances or reputation. This is where companies such as Amigo Loans can revolutionise the lending market, because they work from a personal rather than computerised approach. Amigo Loans work on the basis of having a guarantor, usually a friend or family member, who knows you and your business and can vouch that you will repay your loan on the agreed terms.
Amigo Loans believe that your friends and family know you far better than a computer ever could, and so they are in a much better position to decide how much of a risk you might be. The only criteria is that they are a UK homeowner, aged between 23 and 67, and that they have good credit themselves.