Small business owners are often turned away by lenders when they have poor credit. That’s because a bad credit score implies you have not managed your finances properly in the past. Luckily, it’s possible to secure small business loans with poor credit.
A number of alternative lenders are offering loan solutions for bad credit today. These lenders place more importance on the operating history and strength of your business. In other words, they do not focus solely on your credit score when they consider your loan application.
Here are some loans for bad credit options worth exploring.
Small Business Loans with Bad Credit
The best thing about Kabbage is that it does not require a minimum credit score to qualify. It does, however, check your credit history. If you are looking for some short-term working capital, Kabbage is worth trying. You can borrow from its line of credit and repay on an as-needed basis.
To qualify, you should have minimum annual revenue of $50,000 and have been in business for at least a year. You must also have a business checking account, bookkeeping software or an online payment platform.
It takes only a few minutes to complete the online application process and if approved you can get funds in just a couple of days.
Fundbox does not have a minimum credit score or minimum annual revenue requirement. Instead, it takes the value of your invoices and ability to repay the loan into consideration.
Funding is prompt and takes up to just three business days.
To qualify, you must use bookkeeping software or online accounting that can link to Fundbox and have a minimum of six months’ activity in one of these software applications.
OnDeck offers both term loans and lines of credit. You can go for the term loan if you are looking for some quick cash to expand. If you want to manage your cash flow and working capital, a line of credit is your best option.
To qualify for OnDeck’s term loan, you must have a personal credit score of 500 or higher. For a line of credit, your personal credit score should be at least 600.
Once you complete the online application process, you’ll get a decision within a few minutes and funding as soon as the following day.
Interestingly, OnDeck reports your payment activity to the three credit bureaus, which means paying off your loan on time can boost your credit score.