We are seeing small businesses with poor or bad credit being turned away by the traditional lenders because they require small business loans Canada bad credit. We’ve written several articles on personal loans for people with bad credit – Payday Loan Companies: There Are Options, Canadian Payday Loans No Credit Check: Too Good To Be True!, Payday Loans Are Not The Answer To Your Financial Problems, Personal Loans For Bad Credit: Interested?, Bad Credit Loans Online Attack The Already Vulnerable and others.
However searching for loans with bad credit is not the exclusive domain of individuals; there are also many small businesses who find themselves in the same predicament. And, there are a plethora of companies out there offering to give small business loans Canada bad credit or with actually no credit. Although they are not payday loan companies, they operate in exactly the same way. They are predatory lenders offering subprime loans that are not regulated and are not protected by the same laws that cover the traditional lenders.
If you’re looking for small business loans Canada bad credit, subprime loan companies will hurt your company, not help it. Caveat emptor! Buyer beware! The websites of these business loan companies look very official and several feature the Canadian flag giving the impression that they are affiliated with the federal government. Others have websites with a .org extension also giving the impression that they are government affiliated. Make no mistake; these are for profit companies with no government affiliation or association.
The subprime lending industry is exploding and is now estimated at more than $3 billion in loans a year. According to an article recently published in Bloomberg Businessweek, one of the companies specializing in subprime lending, also referred to alternative lending, is World Business Lenders. “The firm’s representatives pitch their high-rate loans to small business owners who have trouble borrowing elsewhere. World Business Lenders seizes collateral such as vehicles and other assets when borrowers can’t pay, and press legal action where World Business sues companies for missed payments, often sending them into bankruptcy. In fact, 20 percent of World Business’s borrowers were forced to close down last year, according to former executives”. Lenders specializing in small business loans Canada bad credit are no different.
If your business is experiencing financial difficulties, rather than looking for small business loans Canada bad credit, contact Ira Smith Trustee & Receiver Inc., not a subprime lender.Whether you are a small company, an entrepreneurial corporation, or a multi-faceted complex organization, our experienced bankruptcy, insolvency and restructuring team will work with you to solve problems in your financially challenged environment. Starting Over, Starting Now you can get your business back on track.