Poor Credit Small Business Loan: Some Challenges

Getting a poor credit small business loan is even more difficult given today's tough economic crisis. And for many business owners to get the credit they need to operate and grow their businesses. As banks are lending less money to businesses these days, its tough for businesses, even with good to credit, to get financing.


Businesses with poor credit face a much steeper problem when looking for funding, since banks aren't likely to lend to what they consider "very risky" customers.


In addition to that, the bank approval process is usually very lengthy, which can last several weeks, or months. This can prove to be a problem for businesses that need a loan quickly.


However, there are loans available for businesses with poor credit.


Poor Credit Small Business Loans:
Secured vs Unsecured Loans


There are two types of poor credit small business loans: secured and unsecured. Secured simply means that any loan proceeds are backed up, or guaranteed against other assets or collateral owned by the business. In case of loan default, the lender can take possession of those assets.


Since additional assets help to "guarantee" the loan, a secured business loan will be seen as a little less risky, and therefore, the interest rates can be a bit lower than it would be for an unsecured loan.


An unsecured loan is essentially a signature loan, since there are no other assets tied to, or guaranteeing, the loan. Because of the higher risk associated, understandably, it comes with a higher interest rate.


Available Options For Poor Credit Small Business Loans


Banks will only consider an application for a small business loan if they have a good to excellent credit history. They typically want to look at your personal credit score to assess your credit worthiness. A 660 FICO score is usually the minimum to even be looked at, with a 720 and above being more ideal for consideration.


A business owner shouldn't even consider a bank loan if his FICO score is below 660.


Having said that, there are still options available for a poor credit small business loan.


Once you have a succinct, solid business plan in place (this isn't optional, as any lender wants to see a sound business plan), you might consider private investors, or angel investors.


Private investors and/or angel investors often seek out what banks would consider "riskier" ventures. Private investors are attracted to the potential high rewards for loaning their money. Rather than just looking at your credit scores, private investors look at a business' cash flow, as well as other real business assets in weighing their decisions.


You might pay a higher rate of interest for these types of loans, than you would at a traditional bank. However, these days, private investor interest rates tend to be as competitive as bank offerings.


Another advantage with private investor financing is that the application to funding window can be a much shorter period of time than would be with banks. While banks can take several weeks to months to close a loan, if a private investor is interested in your business proposal, funding can take place in a matter of a few days!


Be sure to fill out our quick commercial loan application if you're interested in private investor financing.


Merchant Cash Advances and Unsecured Business Loans: Solutions For Poor Credit Small Business Loans

Pin It

Merchant cash advances are another option to consider for small business loans with poor credit.


Merchant cash advances are funds extended to a business ower against future credit card and/or bank checking account deposit sales. You agree to either a fixed payment schedule, or one based on a percentage of daily sales. These monies are automatically debited from your credit card sales or bank deposits.


Because credit scores are less a factor, since they're based on your monthly credit card receipts, or monthly gross bank deposits, approvals are much higher. Some merchant cash advances even report your payment history to the credit bureaus, allowing you to build a positive credit history.


Approvals are usually determined in 1-2 days, and the application process is much simpler than a bank loan, with far less paperwork required.


One should also consider unsecured business loans. Some private lenders take other factors, not just credit, into consideration when weighing a loan application.


The length of time in business, as well as amount of positive cash flow, along with other factors, can boost the chances for getting approved for a business loan.


If you're a small business with poor credit, complete our quick app below. We will contact you within 24-48 hours. If you're interested in a merchant cash advance for your company, go here.



Complete our quick online application and we will contact you within 24 hours.


Provide us with the basic necessary information and we will verify the amount of money you're eligible for.


Don't worry: your information will always be kept private and not sold.



HERE ARE THE BASIC

DOCUMENTS WE'LL NEED:


  1. - 3 months of your most recent credit card processing statements (if you have them)

  2. - 3 months of your most recent bank statements

  3. - Copy of a voided check we will use to ACH transfer your advance to

  4. - Completed application completed and signed by owners/principals



***Additional documentation may be required for larger business funding or requested exceptions.

Restaurant-Retail Loan App

Please note that all fields
followed by an asterisk
must be filled in.

Please enter the word
shown below.

  

New! Comments

Have your say about what you just read! Leave us a comment in the box below.

Return to Bad Credit Business Loans from Poor Credit Small Business Loan


Poor credit small business loans are available in:



Merchant Cash Advance and

Working Capital Loan Programs

are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


Commercial loans are available in:


Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware,

 Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming


COMMERCIAL LOAN PROGRAM HIGHLIGHTS


Commercial Real Estate Programs

· Lending Area: Nationwide & International


· Loan Size: $100,000-no maximum


· Rates as low as 3.74%

· up to 90% LTV


APPLY HERE

______________________


Commercial Development & Construction Loans

· National & International


· $2MM-$50MM


· Interest Rate: 5-9% Fixed (1% for churches)


· Amortization: up to 25 years


· Zero fees


· Points: Up to 3%, paid at closing


· Term: 5 yrs; also can structure a construction to permanent loan with interest only during draw down periods.


APPLY HERE

___________________


Hard Money Loans Rates and Criteria:

· Loan Size: $100K-$100MM


· Lending Area: National & International


· Collateral: We lend to mainly on commercial real estate, including raw land and development projects


· Interest Rates: 7-14% (rates depend on collateral)


· Amortization: Interest only


· LTV: Up to 80%

· Origination Fee: 1-4%

· Closing time: 1 week to 30 Days


APPLY HERE

___________________


Bridge Loans

· Loan Size: $1MM-$15MM


· LTV: Up to 75%


· Rate: 5-7%


· Term: 1-3 years, Interest Only


· Property Types: Office, Retail, Industrial, Multi-Family, Manufactured Housing, Condominiums, Self Storage, Special Use, Hospitality, Assisted Living/Congregate


APPLY HERE

___________________


Unsecured Business Lines of Credit

· $25,000-$100,000 (start up businesses with no established revenue and business owner with good credit)


· $100,000-$500,000 (established businesses w/ revenue of $1MM or more; no collateral if good credit and financials)


· 0% intro rates on business credit card solutions, to 1-5% over prime for large credit lines.


· No "subprime" unsecured lines


APPLY HERE

___________________


Click Here To Apply for A Business Cash Advance or Working Capital Loan


Bank ACH or Credit Cards


90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

___________________


Restaurant-Retail, 
Small Business Loan Program


  • · Unsecured Loans up to $1,000,000 per location

  • · No Collateral Required

  • · Minimum Annual Sales: $150,000

  • · Minimum: 550 FICO

  • · Must be in business at least 1 month to document sales

  • · Loan amounts below $150,000 require NO tax returns or financial statements


APPLY HERE

_________________


Customer Finance Programs for Businesses

· Can finance your customers down to a 500 FICO;

can finance your turndowns from your current credit provider


· Instant online credit processing and approval


· E-signature capabilities


· Can purchase or collect bad debt portfolios


· Industries include: Medical, Dental, Jewelry Retail, Furniture, Memberships, Private school tuition, Security/Alarms, Vocational Schools, Travel, etc.


APPLY HERE

________________


Click Here to Apply for

A Private Lender Commercial Loan


- Zero upfront costs, zero fees for approval to our programs.


- Minimum loan amounts: $100K for commercial building projects, with no maximums.


- No pre-payment penalties on programs offered.

_________________


Click Here To Apply for A Merchant Cash Advance or Working Capital Loan


- Bank ACH or Credit Cards


- 90% Approval Rates (for most industries)


- Minimum 4 months in business and $8,000 avg. monthly revenue


- No Collateral Requirements; Bad credit is OK


- One Week Funding


- Borrow $5K-$500K in as little as 24 hrs


- Short, simple loan process


- Streamlined underwriting

_________________________


Contact Us


If you have a question or comment, fill out the form below. If a response is needed we will contact you within 24 - 48 business hours. Thank you.

Don't worry -- your e-mail address is totally secure.

Please note that all fields
followed by an asterisk
must be filled in.

Please enter the word
shown below.