If you have a business with bad credit, then you probably know that finding a business load with be difficult. But not to worry as this post on bad credit business loan is going to show you the options you have to find loans when you have bad credit. So that you can make that expansion you want, or buy that equipment you want to buy. Even make those purchases or whatever you want to the loan for about your business.
So if this sounds like what you want and you are in need of a loan for your business with bad credit then it’s good you are here on this post. As we are going to look at some options for you to get a loan even if you have bad credit. But before we talk about them lets first see what bad credit is.
What is a Bad Credit Score
Bad credit as the name says is when you have a record of failing to pay your business past credit obligations. Of course, no one will want to lend to someone who has that kind of record. That is why it is difficult to secure new loans when you have bad credit. So once you have a history of failing to pay up and once the agencies responsible for calculating bad credit calculates your’s that’s when you get the bad credit score.
Once the calculation is done a FICO score is assigned to you based on your information. The FICO means Fair Isaac Corporation which is also the software used in calculating your score. Also, note that a particular business can get different FICO scores from different computing agencies, due to errors, misplacement of information and more.
Now the scores range from 300 – 850 and bellow 670 is considered as almost bad credit. While from 600 and below is bad credit, so if your business fall in this category it means you have bad credit and it will be difficult to get loans.
What Bad Credit Means for Loans
It is easy, once you have bad credit, it becomes difficult for you to get loans to increase your business. The only solution now is to try and take steps to reduce your bad credit. So that banks and other financial institutions will be able to lend to you easily. Therefore it is imperative you do everything possible to reduce it. Now, let’s move over to the main purpose of this post.
Bad Credit Business Loan
However, there are still some loans you can get when you have load credit that is what we mean by Bad Credit Business Loan. And that while you are on this post today. However, there are some lending organizations, that you can get loans from if you want. But there is a catch, you have to meet the minimum required bad credit to apply for a loan from these platforms.
Bad Credit Business Loan of at Least 500
There are some lenders that will let you have a loan from them when your bad credit score is at least 500. So if you have this then you can apply for loans from these lenders. Lenders such as Fundbox, Kabbage, and Quarterspot.will give you a loan if your bad credit is at least 500. However, there are some other factors they may consider.
If you meet these requirements you can visit these platforms and apply for loans. You should still know that these loans will come with high credit and they might not offer up to the amount you need.
Bad Credit Business Loan of 600 or Higher
If you find that your bad credit is 600 or higher then you have other opportunities more than those with 500. There are other platforms that will lend you up to $250,000 short terms loans, like Bluevine and StreetShare. So if you have up to this then you are luckier than those with just 500.
Options to Consider if you don’t qualify for Bad Credit Loan
What I mean by option here are alternative loans you can get instead of those from banks and those financial institutions. That does not concern themselves much with bad credit. These alternatives include the following.
Borrow from people you know
The majority of the people you know will easily borrow you money when they know you. And it also helps if you have integrity. So meet people you know and borrow from them this is also a good way because most people will not ask you to pay back with interests. Making this, one of the best ways to get loans outside financial institutions.
Loan from Online Lenders
This is also another good way to borrow funds. There are several good online lenders that are willing to help you get funds for your business.
You can also decide to apply for a student loan to get a student loan if you are in education a student.