Success Story: When Credit Scores Threaten a Small Business’s Much-Needed Loan

Things happen. But when the “thing” that happened still impacts your credit score, loan, and small business dreams 9 years later, what should you do?

That was the question Rick Hagen faced when he realized his past, personal credit history was could make lenders hesitant to help him fund his business plans. Like 70% of small business owners, Rick struggled with loan qualifications.* Banks, says Rick, weren’t likely to consider him.

An illness almost a decade earlier had left Rick with a bankruptcy on his credit report. He’d worked hard over the years to raise his credit score, but it hadn’t yet reached the range that most lenders wanted. Rick found himself in a challenging situation where, he says, “No one wanted to talk… they didn’t believe in me.” 

It looked to Rick like his dreams for a specialized car dealership in Southern California needed to be put on hold. Still, Rick knew his market, his product had a solid business plan, and he was sure he was going to make it. He just needed funding—he was targeting a small business loan—to help him unlock the doors.

How did Rick make it work? Watch his story unfold here:

*source: SMBO Study, MDI Research. February 2021.

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