A credit score is like a shadow, wherever you go it will follow you! A poor credit score is an indicator that you need to work to improve your cash flow management and on occasions when you need external funding a bad credit score might hinder the chances of your loan approval. A business can need funds for multitudinous reasons; from covering day to day operating costs to cover the rent and payroll, bad credit business loans from traditional and alternative lenders can help you erase the financial errors.
Before we explore the other lending companies, let us review, what it means to have a bad credit business score. Lenders and investors assess your financial credibility by looking at your personal and business credit score. The credit score below 576 is considered as a bad credit score. A credit score is calculated by keeping multiple factors in mind, such as current assets, current liabilities, business structure and type, bankruptcy and foreclosures. There are multiple reasons behind a bad credit score, such as late payments, high credit card utilization rate, inactive credit cards and many other factors. To eradicate those mistakes, you need extra cash flow and this where a bad credit business loan comes to play!
Following are your business loan options if you are considering applying for a bad credit business loan. Borrowers with bad credit scores can smoothly qualify for these loans a Business Line of Credit, Invoice Financing, Merchant Cash Advance, and Equipment Financing. Now, that you know your options, let us peek into the most affordable and most convenient alternative lenders:
- Merchant Advisors
Merchant Advisors has a stellar success rate with businesses with bad credit. The primary goal of the financial advisors at Merchant Advisors is to provide equal opportunities to every business owner irrespective of the credit score. Here, the lenders read your business loan application with a magnifying glass in one hand. Before you start filling the loan application, look at the following features of the bad credit business loan by the Merchant Advisors, then shake on the deal.
- Loan amount: Up to $5,000 to $5 million
- Annual revenue: $50,000
- Minimum required credit score: 550
So, acknowledge your personal and business credit score, check the eligibility criteria and apply for a bad credit business loan. Merchant Advisors offers the following types of business loans:
- Short-term loan
- Business lines of credit
- Invoice Financing
- Merchant Cash Advance
- Working Capital Loan
- Equipment Financing
The borrower has the liberty to use a bad credit business loan as he or she wishes to use.
If you want fast access to funds and cherish a streamline and smooth funding process, head over to Kabbage. Kabbage takes pride in its budget-friendly and user-friendly funding process. You can fill its loan application in ten minutes. Most importantly, Kabbage does not marginalize business with bad credit.
This alternative lender allows you to make the payment daily, instead of a weekly and daily basis. Plus, if you need fast access to cash, it provides a business loan as fast as twenty-four hours. The only drawback of Kabbage is that it does not allow the borrower to make an early payment. So, if you are thinking about early payments, keep the early payment fee in mind.
Following are the main features of a bad credit business loan from Kabbage:
- Loan amount: $2,000 to $250,000
- Required annual revenue: $50,000
- Required Credit score: No credit score limit!
Kabbage is offering the following business loans to bad credit businesses:
- Merchant Cash Advance
- Equipment Loans
- Invoice Factoring
So if you are running a one-year-old business, you stand a solid chance of getting benefit from these bad credit business loans.
Fundbox is next on our list; this is the most ideal funding option for low credit score businesses. Fundbox has something for every business; be it a minority-owned business or woman-based business! Fundbox is determined to offer business loans to every nature of business. If you want to qualify for a bad credit business loan, then your business must be three months old and generating an annual revenue of $50,000. Fundbox is offering a business line of credit at an affordable rate after assessing your bank statement and financial health of your small business.
Following are the features of bad credit business loans by Fundbox:
- Loan amount: $1,000 to $100,000
- Required loan amount: $50,000
- Required Credit score: No discrimination against bad credit.
Fundbox is offering to factor to the business. Although Fundbox is an ideal funding option and you can have access to the funds in 24 hours, but if you are looking for a huge amount Fundbox is not an optimum option!
Next on our list is Lendio, this lending company worries about the financial position of your business to that you can worry about using a bad credit business loan profitably. Other than this, Lendio acts as the middleman between the borrowers and the lenders.
If you are looking for a bad credit business loan from Lendio, you can compare the rate and terms from other lenders. All the repayment along with an interest rate goes in the account of the lender, not in the Lendio’s account. Business owners prefer Lendio because of its remarkable customer service.
Following are the primary features of a bad credit business loan by Lendio:
- Loan amount: $1,000 to $5 million
- Required annual revenue: $120,000
- Required credit score: 550
Same as the rest of the lending companies, Lendio is offering merchant cash advance, factoring, and equipment financing.
If you need a long-term bad credit business loan, OnDeck is the best option! OnDeck offers transparent funding; no hidden rates and fees. Moreover, if you think you can pay the lender before time, you can for there is no early repayment fee. Unlike other alternative lenders, you have to pay the interest anyway. Enjoy the lower interest rate and look at the following features of OnDeck:
- Loan amount: Up to $100,000
- Required annual revenue: $100,000
- Required Credit score: 600
If you are fulfilling this criterion, then apply away!
With all the alternative bad credit business loans in front of you, you should no longer worry about the bad credit. If you think a business loan from Merchant Advisors can help your business financially, head over to our website, and apply away. To stay up to date, follow us on Twitter and Facebook (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.