Business Loans for People with Bad Credit
Financial options for bad credit business loans
When a person has personal bad credit and business bad credit , it can make things very difficult to qualify for
any type of business loan. Even having a credit score of more than 700 can make it quite difficult, it can still be very difficult to obtain a business loan from a major financial institution.
When fixed business loans are not made on time, you can easily damage the chances of
getting secondary finance. Fortunately, there are money lenders who are willing to give loans to businesses with
bad credit. In addition, they can also lend money to companies with bad credit
history. However, the interest rates of these organizations are high as compared to
The following are the alternative business loan options for businesses with bad credit:
Merchant cash advance:
This is a short term loan which is paid in lump sum to a business owner in exchange
for the future credit sales of the company in future. Organizations which are involved in the
merchant cash advance offers quick asses to money without the need of good credit
score or collateral which is substantial. Some of the merchant cash advance companies can offer money within
48 hours of their request. The only disadvantage of those organizations is that, they
charge interest rates which are higher that traditional funding options.
Business credit card loans
This provides business owners with low credit score access to debit financing. In
order repair to previous damages, businesses owners with bad credit are advised to
open a credit rebuilding card.
Micro-loans for business
These are made by non profit making organizations for example Accion. The
organizations assist in granting loans up to $50,000 design to assist women business loans
minority business loans. In addition, it also helps companies who are under
economic empowerment zones. A business person can also get loan through small business
administration (SBA). The SBA lends money through intermediate non profit making
organizations and sometimes banks as well. This is the best option for business with bad credit since their credit
requirements are very lenient compared to other more common business loan options.
In conclusion, business owners with bad credit can get money from the mentioned
organizations. Moreover, a business owner should repair damaged credit scores as best they can before applying for any type of business loan.