Your personal credit score is an important number when it comes to helping lenders decide whether you are a good candidate for a mortgage, credit card or another personal line of credit. It will also help determine the interest rate you are charged for that credit.
What if you are a business owner seeking some type of Bad Credit small business loan? i.e., bad credit going to hinder your ability to secure the funds you may need to make it through a slow time?
The answer is no. Even if you have bad credit, you can still get a small business loan. Why? Because what matters more to lenders that provide small business loans than your personal credit score is the overall financial health of your business.
Types of Small Business Loan Products
There is no such thing as a one-size-fits-all small business loan since each business is going to have unique financial needs. What you need for your business is not necessarily the same thing as another business owner needs for theirs.
Fortunately, there are a variety of products under the small business loan umbrella, including:
- Merchant cash advance—A lump sum payment to a business in exchange for an agreed-upon percentage of future credit card and/or debit card sales
- Invoice factoring—Technically not a loan, invoices are sold at a discount to a factoring company in exchange for a lump sum of cash.
- Line of credit—The ability to borrow up to a certain amount of money and only be charged interest on the amount borrowed
- Working capital—A loan that funds everyday business operations, a flexible option for businesses that need cash quickly to cover immediate expenses
- Business expansion—A source of capital for successful businesses that are poised to grow
- Equipment financing—A loan designed specifically for the purchase of machinery and equipment essential to running a business
- Small Business Administration (SBA) loans—Small business loans partially guaranteed by the U.S. SBA and issued by participating lenders, usually banks
The Takeaway
There’s no need to be discouraged if you have a poor credit score and need financing for your business. Clear Skies Capital is an attractive small business loan lender for businesses, we offer Bad credit small Business Loan to owners with bad credit because we accept minimum credit scores of 500, and 48-hour funding is possible. As long as you’ve been in business for six months, have a business bank account, and have at least $100,000 in annual revenue, you can apply for a loan.
If you would like to discuss your situation and see what your alternatives might be—and how much you qualify for—give us a call at 800-230-9822. Clear Skies Capital helped many business owners with bad credit get the funds they needed to support their ongoing operations.