How to Get Guaranteed Bad Credit Small Business Loans

1
How to Get
Guaranteed Bad Credit Small Business Loan
www.onlinecheck.com
2
Bad credit and loan applications are like Apple
and Microsoft they dont blend together. When
youre searching for a business loan, finding a
lender that can get you funding with bad credit
can be an infuriating process. You might have
come across terms like guaranteed loan approval
and bad credit loans, thinking this could be a
solution to all your financial problems.
However, thats not the case. Before applying
for a business loan with bad credit, use extreme
caution and do due diligence.
www.onlinecheck.com
3
The Guaranteed Approval Misbelief
In reality, theres nothing like guaranteed
approval for bad credit small business loans. Bad
credit doesnt mean you cant secure financing
for your business. However, you should be aware
of any assertion of guaranteed loan approval for
business loans.
www.onlinecheck.com
4
Bad Credit Business Loans
While theres a misbelief of guaranteed loan
approval for bad credit, you will find many
lenders that specialize in working with bad
credit borrowers. Regardless of your poor
personal or business credit score, there are
viable financing options available to borrow
money for your small business even with bad
credit. Before searching for those viable
options, know these such financing options pose a
high risk for the lenders due to the likely
possibility of your default on the loan. With
that said, lenders charge high-interest rates and
less favorable terms than you might expect with
traditional financing. Irrespective of your
credit situation, a good rule of thumb is that
you should carefully read the loan terms,
conditions, and any other fine prints before you
make a loan application.
www.onlinecheck.com
5
Small Business Credit Cards
Qualifying for small business credit cards is
easy, even with a bad credit score. All you need
is to sign a personal guarantee to open a credit
card account. Business credit cards are a great
way to finance your small business when you have
a good personal credit score with poor business
credit. If your business and personal credit
score both are in bad shape, your financing
options may be more limited. In such cases,
qualifying for secured business credit cards can
be your best option, which requires a security
deposit, with lenient qualification requirements.
If you can manage the account well, a secured
business credit card can help build your better
business credit for the future.
6
Alternative Lending
Getting approved for business financing options
with traditional banks and credit unions will be
challenging. With the alternative lending
industry on the rise, you will plenty of lenders
online that are willing to work with poor credit
borrowers offering a more realistic financing
option based on your situation. Online lenders
take into account different factors instead of
just your credit score. If your business has a
stable monthly income, a solid business plan, and
good business history, your chances of qualifying
for bad credit small business loans from
alternative lenders may improve. Several online
lenders provide quick access to small business
financing, including
KABBAGE
BLUEVINE
CREDIBLY
FUNDBOX
MERCHANT ADVISORS
The loan application process is simple and less
documentation requirement and can be completed
within minutes. You can get the decision within
24 hours and funding in as little as 3-5 days
even with poor credit scores.
www.onlinecheck.com
7
Crowdfunding
In Reward crowdfunding, you approach your
potential customer base and convince them to make
small investments in your business in exchange
for their products or services as rewards. In
Equity Crowdfunding, you get capital in exchange
for a certain percentage of your business equity.
The most popular crowdfunding platforms include
Kickstarter, Indiegogo, Patreon, GoFundMe,
Crowdrise, to name a few. Using these platforms,
you can launch and manage a crowdfunding campaign
for your small business. The best thing about
crowdfunding is that it is not a loan and you
dont have to repay it. You get small business
capital in exchange for either with a reward or
business equity. However, crowdfunding is not
for every business and far from a guaranteed
funding option. If youre unable to fulfill your
crowdfunding campaign goals, youll lose the
money you secure for your campaign.
If youre unable to qualify for traditional or
alternative lending, you can get your business
funded with crowdfunding a non-traditional way
to finance your small business. There are two
main types of crowdfunding options
Reward Crowdfunding
Equity Crowdfunding
8
Building Better Credit With Business Loans
Moreover, its also wise to have charge of your
personal and business credit score. You can get
your credit reports from Credit Bureaus (Dun
Bradstreet, Experian, and Equifax) to monitor
your credit for any inconsistencies.
With a good business and personal credit, you can
easily qualify for better business financing
options. With a good credit score, you will not
only get quick funding but also lower interest
rates and favorable terms. Are you looking to
build your small business credit? Here are some
super ways to improve your small business credit
score.
Building and maintaining a good credit score can
help unlock flexible and affordable financing
options for your small business. Since lenders
care a lot about it, so should you as well.
www.onlinecheck.com