Lenders will do a thorough check of your credit history as part of the loan application process. Any late payments will be disclosed and will be reflected in your overall credit score. A history of making late payments will have an adverse effect on your ability to secure a loan. However, if there were unavoidable circumstances that contributed to your bad credit, such as a family illness, you may still be able to secure a loan if you can show that you are now current with all your obligations. If you have a good business plan, don’t be afraid to shop it around even if you have had some credit problems in the past.
For further information about the credit process, see this fact sheet: A Guide to the Credit Process.
