Bad Credit? Big Deal: 8 Bad Credit Business Loans You Qualify For
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Did you know that around a third of Americans have a credit score lower than 601? Are you going to start a new business and need a way to fund it? Are you feeling stuck because you have bad credit? Do not worry you are not alone we have put this guide together to help you.
Keep reading to learn more about bad credit business loans you might still qualify for.
This is an online marketplace that you can search and apply for various business loan types. Whether you need a short term, line of credit, medium-term, or a merchant cash advance the network on Lendio’s site is pretty vast.
Some of the lenders on Lendio accept applicants with bad credit, even with scores as low as 550.
The best thing about Lendio is that you can see if you prequalify before you submit a full application. This will let you see if you qualify for any and will allow you to compare the different offers.
The requirements Lendio recommends for a company to have, include at least 6 months in business, making $10,000 per month, and a minimum personal credit score of 550.
2. Asset-Based Loan
If your business has outgrown its working capital an asset-based loan will give a company the opportunity to borrow against the business financial assets to help cover cash flow needs. When you choose business funding like this will give you control over your borrowing power and will also have lower interest rates compared to other loan types.
Lenders that offer an asset-based loan do not require borrowers to show their ability to pay. What they require are financial assets that are worth more than the loan amount. In case you default they can take over the assets and not lose out on the money they lent out.
When companies have many assets they prefer this type of loan because it’s fast and easy to receive funding. On top of that, the company does not have to cut into their available credit.
Kabbage is great for those with bad credit scores because they do not have a minimum credit score requirement to qualify. They will check your credit history but do not base their answer based on your score itself.
If you want a short-term capital then Kabbage might be perfect for you. You can borrow from its line of credit and repay it as needed. With Kabbage you need to have been in business for at least one year and have a minimum annual revenue of $50,000. They also require you to have a business checking account and bookkeeping software.
Fundbox takes the value of your invoices and your ability to repay the loan into consideration when making a decision. They do not base their decision on a minimum annual revenue amount or on a minimum credit score.
In order to make a decision, Fundbox will require you to link an online accounting or bookkeeping software to Fundbox and have a minimum of six months of activity. If Fundbox says “yes” they will pay within three business days.
If you have poor credit, unpaid invoices, and no collateral then BlueVine might be best for you. They will make sure that you have been in business for at least three months and will look at the value of your invoices and might offer you an advance after analyzing those invoices.
What BlueVine looks for when making a decision is how strong your cash flow is and the strength of your debtors. They do require you to have a score of at least 530 and a minimum of $120,000 in annual revenue.
If you need quick cash to expand you can opt for an OnDeck term loan. If you need working capital and need to manage cash flow then your best option with OnDeck is a line of credit.
OnDeck will require you to have a minimum score of 500 if you are applying for a term loan. If you are applying for a line of credit you need a minimum of a 600 credit score.
A bonus of applying to OnDeck is that you will receive a response within minutes and you can receive your money as quickly as the following business day. OnDeck will report your payments to all three credit bureaus which will help you boost your score.
If you need loan options then Dealstruck is for you. Dealstruck offers an asset-based line of credit, an inventory line of credit, and term loans. They require you to have a minimum credit score of 600 and have to have at least $150,000 in annual revenue.
They will also verify that you have been in business for a minimum of one year.
This is a great option if you are a fairly new business. StreetShares requires a minimum of $25,000 in annual revenue and a minimum of one year in business. They also require the borrower to have a personal credit score of at least 600.
They also allow you to take out a loan if you have been in business for only six months as long as your revenue is a minimum of $100,000.
Which One of These Bad Credit Business Loans Will You Qualify for?
Now that you have gone over our list above of bad credit business loans, it is time to start applying and choose the best option for your needs. Remember to always borrow responsibly to avoid getting in over your head with financial stress.
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