Where can I Find Business Loans with a Bad Credit Score?

KCF Admin

8 years ago

Where can I Find Business Loans with a Bad Credit Score?

Not everyone grew up in a household that understood financing. Having a bad credit score is unfortunately not uncommon. But sadly, it can really hurt you in the long-run. This is especially true when it comes to running your own business or applying for any type of financing. But you don’t need to panic yet because you can still receive business loans with a bad credit score, you just need to know where to find them.

Many business owners often wonder where to find financing for my business? This is because the majority of small businesses on the market are going to need financing at some point in their business’ lifetime. But many funding sources may be out of reach if you haven’t had the best financial times and managed your credit score effectively over the years. Some financing options that are probably not an option for a person with bad credit include:

Bank Loans
- Although this a great option, banks have extremely high lending standards. This is due to regulations mandated by the federal government. That means having a poor credit score is a big red flag against you.
Some Business Credit Cards
- Even though this is not a typical business loan it is an option to finance a business through. But credit card companies are going to take into account your credit score. They are looking to see if you have been responsible with credit in the past. If you have been irresponsible with your, they may deny you moving forward.

But you should not allow your credit score to hold you back from achieving your dream of financing your business. There are many alternative lenders that are popping up to get people approved for business loans with a bad credit score.

**What should I look for from a provider when it comes to business loans with a bad credit score?**

First, you are going to want to look for an option that doesn’t look at your credit score. For the companies that take credit score into account, you will be put into a high-risk category and even if you do qualify, you will be charged a higher interest rate.
Next, you are most likely going to want to find an alternative funding provider. This is because many alternative funding options are not regulated in the way the traditional credit card and financial industries are. That is how they can elect to not look at your credit score.
Consider finding a provider that will be able to help you build back up your credit score. Many providers can also educate you on financial management.

**As you face your funding challenges and are looking for business loans with a bad credit score consider these options as a way to get started:**

Local and National Grants for New or Small Businesses
- There are many grants available for women and minority-owned businesses; as well as, small businesses. This is a great option to get started with financing because they are typically offered as “free” money with some simple requirements.
Talk to your Friends and Family
- If you can’t qualify for a bank loan or credit cards to kick start your business, the people who know you best are a great option. Most family members will not charge you interest when it comes to the loan. Something that is comforting for your friends and family to know is that 50% of all business owners have financed at least a portion of their business through friends and family.
Microlenders
- Consider looking into microlenders as a potential option if the amount you need is under $25,000.
- What is great about this loan option is that it is a nice way to start building back up your credit score. But make sure you do your research to find the best interest rate you can qualify for.
Merchant Cash Advance
- If you need cash fast, a merchant cash advance is an option to consider. This alternative funding provider will not dig into your credit score. Their requirements are much simpler than a bank’s and many other financing options.
  - At eBusiness, there are only 2 requirements. The first is that you generate at least $10,000 a month in revenue. The second is you have been fully operational as a business for at least six months. If you can meet those 2 requirements, you have a 90% chance of being approved.

At eBusiness, we understand that mistakes happen. Not everyone can have that perfect credit score. That is why we make it simple for businesses to start growing their brands fast! We want to see all of our customers thrive and if we can be a part of that, we want to be.