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A bad credit may make financing a little difficult, but it is not impossible. A lot of lenders deal with Bad Credit these days.
Before you start looking for a loan, try to repair your credit a little bit. Get yourself a credit report and look at all the past blemishes and make sure they have been resolved and cleared out from your credit history. Ask for proofs of payments from all the credit inquires and keep that with you, as the lender may ask for the proofs. Make regular payments of the existing debts and do it for a longer period to show your lender that you are committed to pay off your debts.

Open a business credit, make purchases and pay it off on time to increase your credit faster. Business credit cards should be available if you are doing well and have enough cash flow.
Now that you have done all this, it is time to apply for financing. Here are some of the key points to remember when looking for financing with bad credit.

1. Higher down payment

Your lender maybe willing to provide you with the resources you need with a larger sum of down payment. It is always good to prepare yourself with the money needed, this provides lender the confidence that the client is serious about financing the deal and will be able to pay off the loan on time.

2. Higher interest rates

This is a given point, lower the credit, higher the interest rate. A lender may be able to negotiate the interest rate a little but there is only so much he would be able to do with bad credit.

3. Co-signer

A lot of lenders would ask you to find a co-signer with good credit. It will really help your case. It would be a good idea to find a co-signer beforehand. They will help reduce the interest rate and the down payment.

4. Credit inquires

If there were any late payments on your credit or any debt that was payed off, make sure your keep all the receipts with you as proof. The lender will ask for a receipt, when they pull your credit.

5. Be honest

Be honest with your lender about your credit score. If you ever declared bankruptcy, inform the lender before hand. If your credit is too bad, the lender may tell you in the beginning that it is a no deal. This way they will not pull out your credit and affect it further.

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