However, the irony is banks are still more likely to offer business startup loans for bad credit, just that they will be more prudent and cautious while lending. Since the banks and financing institutes have to keep things balanced between their loans as well as deposits and thus, helps to maintain healthy account. If you seek approval from banks for your loan application, then they look up to the below mentioned factors in order to gauge your capabilities and financial standing from borrowers.
Generally the banks use Credit Tip Of System (CTOS problem) and Central Credit Reference Information System (CCRIS problems) to perform a check on the credit standing on the borrowers before approval. CTOS collects data from the public sources and is an indicator whether the person has been sued or bankrupt anytime. One you are blacklisted in CTOS, it will stay in database for ever and is eternal.
CCRIS houses the credit data of an individual and accounts commercial loans, housing, personal and government loans, credit card etc. If any person is default in the repayment then it will be reflected in the list. The report numbers show the number of time the payment has been delayed. Any loan or credit, earlier approved or rejected will be reflected.