Business Financing Options With Poor Credit

working-capital-940x627When you have poor credit, you have to know where to look for business financing. A low credit score doesn’t have to hold you back and keep you from getting the cash you really need. Here are some of the options you can use for business financing even with bad credit.

Business Cash Advance

If you need cash for your business and you need it fast, a business cash advance may be the best option. This type of financing will allow you to get the cash you need without worry of a low credit score. You can get as much as you need based on your credit card sales.

This type of funding will also allow you a flexible repayment schedule. Instead of making a monthly payment, you can use a split repayment plan, which means a small percentage is taken from each credit card sale to pay the loan back.

Loans from Friends and Family

A viable, yet unpopular options, loans from family and friends can certainly help your business. Often, entrepreneurs use a loan from somebody they know to get started. They may give the person a small percentage of equity in the business or pay them back with interest. You won’t have to worry about credit with friends and family, in most cases.

Micro Lenders

Some micro lenders or nonbank lenders will offer business loans from about $5K to $25K. If you don’t need a large sum of cash, you can use one of these sources to get the capital you need.

This type of lender will often accept poor credit and will help you raise your credit score when you make on time payments. However, you will be expected to pay a high interest rate, which will be based on your credit.

Bad Credit Business Credit Cards

In some cases, you can get approved for a business credit card with bad credit. This is an option, but not one of the better choices. If you have a very low credit score, you will most likely pay a very high interest rate and only receive a small amount of credit. This should be used at a last resort.

When you need cash for your business, one of these methods of financing may work for you. Make sure you get the amount you need or you may be coming back for more faster than necessary.

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