Small Business Loan Bad Credit Okay!
Bad credit is a major concern among people today, and nearly 25 percent of Americans struggle with bad credit scores. This can damage their ability to get a car, buy a house, and even run a small business. All small businesses require funding in order to thrive in the industry, but many entrepreneurs are routinely denied access to loans due to poor or nonexistent credit histories. Fortunately, there are a variety of lenders who cater specifically to individuals with poor credit, enabling business owners of all financial backgrounds to access the funding they need. Keep reading to learn options about ‘small business loan bad credit score’ no problem.
Family and Friends
Your family and friends know you personally and are eager to watch your business succeed. By seeking out loans or investments from the people you know best, you can access the capital needed to launch your business venture regardless of your credit score. However, don’t expect your family and friends to offer you loans at no interest. While interest rates will likely be lower than other loan options, it will increase their confidence and assurance in lending to you if you promise to pay a small interest rate in exchange for their generosity. Be professional with your presentation, and treat it as you would any other business deal by presenting them with a sound business plan and strict repayment terms.
Merchant Cash Advance
Merchant cash advances provide a convenient option for business owners struggling with poor credit. With a merchant cash advance, you are provided with a chunk of capital in exchange for offering the agency a percentage of future credit card sales. The repayment terms consist of a fixed monthly rate that automatically deducts from your account each month. Interest rates for cash advances vary drastically, so conduct research into a variety of agencies to ensure you receive the best deal available.
There are a variety of micro-lenders available that can get you a small business loan, even after the banks have turned you away. Micro-loans range in size, but are often around $5,000 to $25,000. Most micro-lenders are willing to accommodate those with poor credit and by repaying the loan on time, it can even help improve your credit score for later. Interest rates vary, so peruse a variety of micro-lenders to source the lowest rates possible.
Find a Cosigner
Sometimes, all it takes to have your application approved is finding a cosigner with good credit. Perhaps you have a business partner, a friend, or a family member who would be willing to cosign on your loan. A cosigner will provide added assurance to the loan agency that, should you ever default on the payments, there is another individual capable of paying what is due.
When searching for a small business loan, bad credit can seem like a deal breaker. However, there are a variety of lenders that cater specifically to individuals who have been turned away by the banks. Micro-lenders offer loans of up to $25,000, enabling you to access a substantial portion of needed capital, even if your credit score is suffering. For those in need of smaller short-term loans, merchant cash advances can provide a convenient alternative to traditional bank loans. No matter your credit score, there are lenders available who are eager to help you succeed. For all your working capital needs, contact Credibly.