How To Get A Business Loan If You Have Bad Credit
Nearly 1 in 3 Americans have “subprime” credit, and approximately only 21% are considered to have “good” credit. As a Business Owner, knowing how to get a business loan if you have bad credit can be the key to your business’ ability to succeed or overcome any unexpected challenges.
36% of Business Owners have high or medium risk credit, making it difficult for them to obtain traditional bank financing. As any Business Owner knows, sometimes your business needs quick access to capital, and if a bank loan isn’t an option, then you have to find another source of funding.
Because of this, over 70% of Business Loan Applicants have reported having to use their personal funds to help overcome challenges that their business has faced. When the goal, ultimately, is to have the business support itself financially.
Luckily, due to the large demand for bad credit business loans, there are now Online Lenders that specialize in offering bad credit business loans, or helping business owners with less than perfect credit.
93% of online-only-lender applicants were approved for at least some business funding. According to the Federal Reserve Bank of Cleveland, “Online-lender applicants reported greater success obtaining credit than traditional-lender-only applicants, despite having lower credit scores“.
This gives Business Owners, with bad credit, the ability to continue to build and grow their business without having to use their personal funds to cover all of the expenses.
Working Capital
A Business Working Capital Loan is a short-term, and quick, revenue based loan that is a great option for Business Owners that have bad or challenged credit.
Term Loans
A Business Term Loan typically has a fixed funding amount, with fixed terms and payment. It can be used for almost any business related expenses.
Line of Credit
A Business Line of Credit, is a revolving credit line for your business. It can be pulled from as-needed, and fees are based off of the amount and time borrowed.
85% of cash advance applicants, 73% of line of credit applicants, and 67% of business loan applicants were approved for at least some of the amount that they had requested.
If you would like to compare the different bad credit business loan options, complete the form below, and choose the bad credit business loan that works best for your business.
Compare Loan Options
Get Approved For A Bad Credit Business Loan
Getting approved for a bad credit business loan is actually easier than you may think. It only takes a few minutes to complete the easy online application. Once approved, select the terms that work best for your situation, and complete the simple online checkout process.
Same Day Funding is available. Unlike banks, which can take weeks to get approved for and funded, this process typically only takes a couple of hours from application, to the account being funded.
What Are The Minimum Requirements?
Since the approvals are primarily based on the qualifications and revenue of the business, not the credit of the Business Owner, anyone can apply for one of these business loans. Your business just needs to meet the following criteria:
- 3 Months Time In Business
- Minimum Of $10k In Monthly Revenue
In order to submit for approval, we just need a signed application and the 3 most recent months of business bank statements. Once those are received, Underwriting will put together some options for you to review.
By eliminating a lot of the documentation, Underwriting is able to quickly review the application and make a decision. Even if you have good credit, but need a fast and easy business loan, this can be a great option.
Benefits Of A Bad Credit Business Loan
- Easy Online Application Process
- Fast Funding Process
- Flexible Terms & Payment Options
- Business Related Expenses
- Minimal Documentation Required
- Bad Credit OK
How Much Can I Get Approved For?
The approval amounts for a bad credit business loan are primarily based on the strength and cashflow of the business. In general, the Lender will typically approve the business for an amount relative to the gross annual sales of the business. The higher the revenue, the higher the approval.
There is no cost to apply, or any obligation to accept any offers that are made. If you feel like a bad credit business loan may be a good fit for your business, please complete our easy online application and we’ll put together some options for you to review.
If you have any questions, or if there is anything we can do to assist, feel free to contact us.
