Securing a business loan if you have bad credit can be frustrating as lenders continue turning you down there. A bad credit tells most lenders that once upon a time, you had poor management over your finances, which makes them hesitant to give out loans to small business owners.
The good news is, even with your bad credit, you can still acquire small business loans, for example, something like this Paypal business loan could work for you. Many alternate lenders offer loan solutions to business owners with bad credit. Such lenders place their focus on the strength and operating history of your enterprise and less on your personal credit score. With the help of professional financial advisers and sites like debtconsolidation.loans, this may not have to be as stressful as you initially thought.
If you have bad credit, and you’re looking for a business loan, then here are a few credit options you can explore.
1. StreetShares
If your business is just starting out, then StreetShares is an excellent loan option that is worth exploring. To get a business loan from StreetShares, you need to have been in business for a minimum of one year and have a yearly revenue of $25,000. If your business is not up to a year but six months, then you can also be eligible for a loan if your revenue is up to $100,000. Another requirement is that you should have a strong cash flow and a 600 minimum credit score.
2. Fundbox
Fundbox is a unique business loan option for those with bad credit because it does not require a minimum annual revenue or a minimum credit score. What it considers is instead is the actual value of your invoice and your proficiency in paying back the loan. Loan processing is fast and may take up to three working days. Before you can qualify, you need to use online accounting or bookkeeping software that is capable of linking to Fundbox. You also need to have six months minimum activity on any one of those software applications.
3. Kabbage
If you’rein need of a short-term capital for your business, then you may want to check out Kabbage. What makes Kabbage such a viable option for obtaining a business loan when you have bad credit is that it doesn’t require a minimum credit score for you to qualify. However, it does check your credit history. Kabbage allows borrow from its credit line and repay when needed. Your annual revenue must be up to $50,000 before you can qualify for the loan. Your business also needs to have been up and running for at least a year, have an online payment platform or a bookkeeping software, and a business checking account. The online application process takes only a couple of minutes to complete and you can get your funds in a couple of days once your application is approved.
4. BlueVine
Don’t have any collateral? Areunpaid invoices and bad credit stopping you from getting a business loan? Then you may want to check out BlueVine. With BlueVine, you get an advance according to your invoice value. Loan approval depends on how steady your cash flow is, as well as the monetary strength of those owing you money. Before you can qualify for a loan with BlueVine, your credit score should be up to or above 530. You also need to have a minimum annual revenue of $120,000, and your business should have been running for a minimum of three months.
Conclusion
Trying to secure a business loan can be problematic especially when you have a bad credit score. However, that shouldn’t stop you from looking for other loan options. First, you need to have a good understanding of your situation and your needs, and then look for options that match your requirements. Understanding what is small business will help your application as well. For more information on finance news “Click Here.”
