You need low cost, flexible funding options, don’t you? Well, what to do if your credit is far from being excellent? This article will show that obtaining a bad credit business loan or funding isn’t as frustrating as you may think. Also, you’ll know how you can get a high risk business loan with ease.
Small Business Funding with Poor Credit
Serving as a calling card for your business, your credit score shows you haven’t been an excellent “manager” of your finances. The truth is that 500 – 550 (FICO score) will definitely put some rocks on your way. However, poor credit doesn’t close all the doors in front of you.
By the way, when applying, remember to pay special attention to those lenders who’ll premise guaranteed approval: this is something to put you on guard. Overall, when securing business funding with bad credit, you should:
- Know your personal credit score
- Compare the potential funding providers’ requirements
- Look at not only the eligibility requirements and repayment terms, but also find out whether the lender is a respectable one or not
High Risk Business Loan for Bad Credit Merchants
Do you have bad credit? Well, you must be looking for a lender that doesn’t require you to have a minimum credit score, takes the value of your invoices, considers your ability to repay the loan, and doesn’t need collateral, mustn’t you?
Here’re several bad credit funding options that can be the answer:
- Alternative Online Funding
So many business owners are choosing alternative online lenders over traditional ones these days. The important thing is to find a reputable one in your field that utilizes the latest technology on its online platforms and offers exceptional rates and terms. Consider working with FirstAmericanMerchant.com. First American Merchant is an award-winning business funding provider and a BBB-accredited processor that’s dedicated to offering low and high risk merchants a high risk business loan at the cheapest rates, minimum of paperwork, and with an unmatched fraud prevention service. - Business Credit Cards
With credit cards, you can buy items or get cash advances. However, credit card loans have higher interest rates. - Crowdfunding
These online campaigns promise the “investors” to get ROI, as well as profits in a certain period of time. - Friends and Family
Do your family and friends want to invest in the future of your company? Make sure to tell them about the risks and what you’re going to do with their loan or donation. - Investors or Partners with Good Credit
In this case, you must agree on the ownership percentage and responsibilities of the investor or partner. - Microloans or Nonprofits
Have you tried a microloan or assistance from a nonprofit? Remember that microloans are available in smaller loan amounts, and require higher interest rates. They impact your credit score. - P2P Lending or Peer-to-Peer Financing
Most of these lenders operate online and offer online application and approval processes.
To sum up, even though it may seem intimidating to secure funds with bad credit, however, it can be more than possible if you work with the right specialist.