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Our Top Five Picks for Bad Credit Small Business Loans


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Title: Our Top Five Picks for Bad Credit Small Business Loans

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Bad credit has become a common reason for the
rejection of small business loan applications.
Lenders consider poor credit borrowers a risky
investment because of their high probability of
loan default. However, even with bad credit,
there are financing options available for poor
credit borrowers.
When youre struggling with bad credit, you might
think its nearly impractical to get funding for
your small business. Luckily, thats not always
the case. The alternative lenders are taking into
account different factors other than credit
scores to determine the creditworthiness of a
borrower. While most lenders will require your
credit history, you will find that stellar credit
ratings are not always essential to qualify for
business loans.
With bad credit, you might not be able to get
affordable financing options with low cost and
favorable terms however, you will find bad
credit small business loans for your small
Bad Credit Business Loan The Adjustment
While youll be able to secure business loans
with bad credit, but because of the high risk
involved, youre more likely to pay a higher
annual percentage rate (APR) to cover the extra
Lenders charge higher interest rates to bad
credit borrowers to compensate for a higher
expected default rate. Just as theyre providing
capital to help you grow your business, there are
also trying to grow their business, which means
maximizing their ROI. Here are our top five picks
for business loans for bad credit.
Top Five Picks for Bad Credit Business Loans
Every microlender has its own set of rules and
requirements. The most popular microlenders are
Accion, LiftFund, Opportunity fund, Justine
Petersen and Grameen America. Most of these
lenders want to know about your business idea and
uniqueness. They typically use a person-first
approach instead of automated approval for
funding. Just know the microlenders offer smaller
loan amounts with the loan process.
Microlenders are non-profit institutions that
provide financial assistance to disadvantaged
communities and deprived businesses. They
typically provide loans of 50,000 or less to
startups and new businesses. Since microlenders
are mission-focused or mission-based lenders,
most of them also provide business counseling and
training with educational events.
Lendio is a marketplace of lenders that match you
with financing options from their nationwide
network of esteemed lenders. Lendio does not
originate loans directly, instead, it matches you
with the best possible loan options you can
qualify for, and so you can compare rates and
terms to secure the best business loans for your
situation. The best this is that Lendio is
working with industry-leading lenders (including
PayPal, Bank of America, Fundation, and OnDeck,
to name a few), so you wont miss an opportunity
to get a business loan from them.
If youre looking for alternative financing and
tangled about where to start your, Lendio is the
first stop for your business especially when you
have poor credit.
BlueVine is an online lending service for B2B
businesses that have long invoice cycles and are
struggling with unpredictable cash flow due to
slow payouts from customers. If your business is
struggling with inconsistent cash flow and needs
quick cash to fill the gaps, BlueVine is your
best choice. BlueVine provides advances up to 85
of your outstanding receivables up to 100,000 to
work with instead of waiting for invoice payments
to come through. In order to qualify for BlueVine
invoice factoring, you will need to have three
months of time on business, 530 personal credit
score, and annual business revenue of 10,000 per
Credibly is the best funding source for startups
that provides small business loans and merchant
cash advances. The best thing about Credibly is
that it has its own set of rules and criteria to
qualify borrowers, and theres no minimum credit
score requirement. In order to qualify, you must
be in business for 6 months with a 15,000 annual
revenue monthly and 500 personal credit score.
Credibly loans are not available in every state,
so before you apply to them make sure it serves
in your state. No minimum credit score
requirement and fast and easy loan process make
it a worthwhile alternative.
Business Credit Cards
Another popular form of getting bad credit small
business loans is via business credit cards.
Although not a loan, business credit cards can
help you find the funding you need without the
hassle. Different cards have varied requirements,
so you may be able to find one that will work
with your current credit situation. If youre
unable to qualify for business credit cards, look
for secured credit cards. For a secured credit
card, you need to deposit or provide collateral
(as cash) upfront. With business credit cards,
you will not only get funding for your business
but can also build your credit.
Why Credit Score Matters To Lenders?
If you have a history of timely payments, youre
likely to have a good credit score. On the
contrary, if your track record includes late or
missed payments or defaults, youll likely have
bad credit and lenders will be reluctant to
approve you for business loans. Your credit score
is the main factor that lenders use to determine
your repayment ability and whether they should
lend you or not in the first place.
Lenders are in the business of making money and
they dont just lend money as a charitable
actthey want to get paid back. With that said,
they consider credit score as the main
determinant of your creditworthiness
How Credit Score Affects Financing?
Your credit score also affects the chances of
financing. Put simply, you have more chances of
approval with a high credit score and vice versa.
Even if youre approved for business loans, your
credit score can affect your loan amounts and
interest rates. A higher credit score will get
you higher loan amounts with lower interest
rates, and more favorable repayment terms. With a
bad credit score, you will get a lower loan
amount with lower rates, and shorter repayment
What types of business loans are best for bad
If you have a bad credit score, financing options
like invoice financing, equipment financing, and
merchant cash advances are your best options.
Qualifying for these financial products is easy
because it involves collateral making it easier
to qualify for than traditional loans. In these
loan options, the equipment, your invoices and
the percentage of your credit card revenue serve
as collateral. You can also qualify for some
short-term loans and lines of credit as well.
How Merchant Advisors OffersBusiness Loans for
Bad Credit?
At Merchant Advisors, we believe you can achieve
great things with the right financial support.
Which is why we offer guaranteed bad credit
business loans with no hidden fees or costs. When
evaluating your eligibility for small business
loans, we take a holistic view of your business
by considering an array of factors such as
personal credit, tax returns, financial
statements, and other relevant documents not
just your credit score. Irrespective of bad
credit, our business loans for bad credit feature
easy paperwork, quick turnarounds, and flexible
payments. Contact Merchant Advisors to explore
your bad credit small business loan options today.
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