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How to Find a Small Business Loan with Bad Credit

While there are many reasons why a company might be categorized as “high-risk”, this typically means the business is operating within a high-risk industry and/or a risk of financial failure exists. High chargeback rates and limited time in business will also push a business into this category. If you are struggling with bad credit, your business will definitely be considered “too risky” to extend a small business loan to. So where can you go from here?

How to Get a Loan with Bad Credit

Depending on how bad your credit score is, it will be very difficult – if not impossible – to secure financing with a traditional lender. But that does not mean you are completely out of options. When they find themselves in this situation – bad or little to no credit – many merchants turn to a high-risk business loan.

Traditional high-risk business loans involve very high interest rates because the lender will want to minimize their risks, or they will involve short-term agreements. Other high-risk businesses will turn to an online lender to borrow a small amount of money ($5,000 – $25,000). Unfortunately, most high-risk business loan options are simply not cost-effective, or it does not provide the amount the business really needs to boost its cash-flow.

Alternative Lenders

Therefore, many businesses – especially startups and small business – are increasingly turning to alternative lenders like First American Merchant. Thanks to high-risk specialists like FAM, businesses with a less than stellar credit score can easily secure the cash they need for growth and expenses. There high-risk business loan options are not only flexible, they provide businesses with cash quickly. These funding solutions also allow the merchant to rebuild his or her credit score.

Credit scores below 500 are approved, no tax returns or financials are required and the application can be completed in a matter of minutes. The long list of business types FAM works with includes: automotive repair, auto sales, appliance sales, medical and dental services, bicycles, furniture, and home improvement, among many others.

If you are struggling to find the funding you need to get your business idea off the ground or need extra cash to purchase equipment and inventory, consider what working with First American Merchant can do for your business. Skip the long wait times and being denied funding. You can secure the cash you need in as little as 24 hours.