Bad Credit? Where to Find Business Loans #business #loans #with #bad #credit


Bad Credit? Where to Find Business Loans

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Bad credit, defined by FICO as a score of 300 to 629, is a common reason that banks use to reject small-business loan applications. Alternative lenders provide options for borrowers with a spotty credit history. These companies typically focus more on the strength of your business than on your personal credit score.

Consider these factors before choosing a financing option:

  • The lower your credit score, the more likely you’ll have a higher annual percentage rate, which includes your interest rate and all fees, on your loan
  • If you have unpaid customer invoices, you can get immediate cash through invoice factoring or financing
  • If you could wait and improve your personal credit. you may qualify for more options

Here are our recommendations:

If you have less than a year in business

If you have unpaid customer invoices

If your personal credit score is 500 or higher

If your personal credit score is 600 or higher

If you have less than a year in business

If your enterprise is less than a year old with little revenue, it’ll be tough to find a loan, no matter your credit.

If you have unpaid customer invoices

Fundbox and BlueVine let you turn your unpaid customer invoices into immediate cash. They typically evaluate the strength of your customers, such as whether they pay on time, more than your personal credit.

Consider Fundbox s invoice financing if you need less than $100,000 in financing. Borrowers pay a median fee of 7% on each invoice advance on a 12-week repayment option and 15.7% on a 24-week option.

BlueVine is a good option for businesses with larger invoices of up to $2 million. BlueVine charges a weekly fee of 0.5% to 1% of the invoice amount. The fee drops by 0.1 to 0.2 percentage point for borrowers whose clients pay their invoices on time.

  • Fast funding
  • No minimum revenue or credit score required
  • Fees waived if you repay before 12 or 24 weeks
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