The Best Business Loans For Bad Credit

Here are 4 best types of business loans if you have bad credit.

Believe it or not, you can get a business loan even if you have bad credit.

With that said, if you do have bad credit, we strongly recommend investing in a credit repair program that can improve your credit as soon as possible.

It doesn’t take as long as you might think and it will save you a lot of money in interest and fees in the long run.

For now, let’s go through 4 types of business loans you can get with bad credit:

Loan type #1: Non-profit microlenders

If the lender is non-profit, they often have very low or even no interest rate loans on smaller loan amounts.

You won’t be able to get very much (usually up to $15,000 or so) but it’s better than nothing.

Some microlenders also offer mentorship to help you grow your business as well, which can be a nice added benefit.

Loan Type #2: Factoring or invoice financing

We actually spoke about this type of financing in more detail in a previous email.

But as a quick refresher, this type of financing is based on the amount of customer invoices you have outstanding.

Because this financing is based upon the creditworthiness of your customers—your weak credit is often not a primary consideration in creditworthiness decisions.

Loan Type #3: Business credit cards

These tend to be much easier to qualify for than a term loan or line of credit, making them a great way to access credit today and establish a strong credit history for the future.

There are many different types of business credit cards so you want to make sure you know what your best options are first before applying.

This is also a part of your Custom Business Funding Plan so make sure to request it at the end of this email.

Loan Type #4: Merchant Cash Advance (MCA)

Because this is a high-risk loan type, they are typically very expensive, but can give you the cash you need if have poor credit and can’t qualify for a different loan.

When considering this type of loan, you just need to make sure you can afford the terms and that the terms are very clear.

You’ll also want to be investing in a credit repair program as well so that when you’re credit improves, you can qualify for a loan with better terms and pay off the MCA.

Conclusion

Having bad credit doesn’t mean you don’t have options for funding.

It just means you’re going to pay a lot more for the loan than you would with better credit.

So keep these loan types in mind for when you need emergency cash but also make sure to continue working on improving both your personal and business credit as well.

Get qualified for business funding today by visiting our funding platform ROK Financial here.