Business loans for bad credit don’t require excellent personal credit. You can get a business loan with a fico score in the 520 range. Working capital loans, merchant cash advances, and business are about the health of your business, not your credit score.
GetMoney.com work with a number of lenders that specialize in catering to entrepreneurs looking for business loans with bad credit.
Business loans for new business
Fortunately for entrepreneurs, there are alternative business loans available. Alternative business loans fund fast and require minimum documentation. The quick process and little documentation required makes these loans an excellent alternative to business loans from traditional sources.
Minimum requirements for alternative business loans are:
- At least 6 months in business
- 3 months bank statements
- A minimum deposit of $7,500 per month
Although credit decisions and risk assessments for alternative business loans aren’t solely based on the borrower’s credit score, it still plays a major role in establishing a borrower profile. A borrower can have a low credit score, but a strong credit history documented by on-time payments.
Improve your bad credit with a business loan
Instead of continually maxing out your credit cards, consider getting a business line of credit or a quick business loan for bad credit.
The high debt to credit ratio causes your credit score to drop, which makes everything more expensive. A business loan for bad credit will most likely have the same rate as a maxed-out credit card.
The benefits of getting a business loan and keeping your credit card balances low include improved credit scores, qualifying for better business loans, auto loans, and mortgages, which will ultimately put you in a better position.
Appear as a stronger borrower
#1 improve your credit profile
Minimize your expenditures, this is the simplest start to improving your credit profile. Lenders will look at your overall obligations, and the less they see, the more they like you.
Budget accordingly, put off unnecessary purchases, and pay-off all small debt that shows on your credit report before requesting a business loan. Keep in mind, doing this will improve your credit, but more importantly, it strengthens your profile, which could turn into a lower interest rate business loan. To see what your best course of action is, start a loan with GetMoney.com. Business loans through GetMoney.com have competitive rates and flexible guidelines for loans up to $500,000.
#2 separate yourself from the business
I recommend using a business card for all business-related expenses. Pay business expenses through the business accounts, even if you are taking money from your personal account to pay the bills. Treat it as a loan to the business.
Lenders like responsible borrowers. It might not look like much on paper, but underwriters are usually biased towards borrowers that are organized and responsible.
If you are ready to see what you qualify for, request a no cost, no obligation loan.