Give us a call for more info 1-800-210-5649
Skip to content

Getting a business loan with bad credit

It’s a common misconception among people that businesses with bad credit cannot get financing options. The truth is that businesses with bad credit can indeed access a loan. Their options are somewhat limited, and such a business search for a loan would really have to involve borrowers whose loan policy is lenient on businesses with bad credit. These borrowers have loan products tailor made for businesses with bad credit. Some of these loan programs designed for businesses with bad credit include but not limited to Bad Credit Business Loans (SBA Commercial Loans), Story Lenders and Poor Credit Commercial Mortgages (Commercial Hard Money). For merchant cash advance bad credit knowing banks or lenders who overlook a business’ bad credit score in awarding loans is critical if such an organization is after securing a loan.

A Small Business Administration (SBA) Commercial Loan is perhaps one of those ways businesses with bad credit can access a loan. The SBA commercial loans are backed by a government agency, which acts as a guarantor to commercial lenders. This guarantees lenders that they will get their investment back should the business defaults on its loan repayment. A borrower is therefore advised to first visit different banks to which has guidelines that best work for them.

Poor Credit Commercial Mortgages (Commercial Hard Money) requires a business with bad credit to give some form of collateral to the lender so as to leverage the debt.  For Bankruptcy business funding this is sometimes one of the only ways of securing a loan. Commercial hard money lenders are interested in a business’ equity. This equity could either be the business’ machinery, real estate or vehicles. With collateral a borrower gives a lender assurance that in case of a default, the lender still holds something of value that they could use to recover their losses.

Story lenders are institutions that base their loan application and subsequent approval depends on how a borrower expresses themselves. In such cases the borrower is advised to clearly show why they are facing investment challenges in their business. For such an application to be approved the borrower would have to present a detailed business plan and thorough reasoning with the prospective lender.

Merchant cash advance bad credit requires the borrower to present a detailed and comprehensive business plan. A great business plan shows that despite your business’ bad credit, the borrower is best suited to conduct business in your preferred industry. Show the prospective lender what your competitive advantages are and who your competitors are. When applying for Bankruptcy business funding using a business plan, be sure to show the lender that through your business plan the lender will recoup their investment.

For any business with bad credit, there should be a continued push towards improving its credit rating. This could be useful to the business in future loan applications. There are other forms of credit available to businesses which require different requirements. These other forms of credit include business line of credit, cash advance, microloan and peer to peer to peer loans. A borrower is therefore advised to browse through the different lenders with an aim of getting a loan program that best suits them.