Unsecured business loan for people with bad credit
However, recently, it was found that small business owners with good credit found it easier to obtain business loans from traditional banks; financing for small businesses is part of job growth. Unfortunately, on another note, those with bad credit may have a hard time getting the money they need during a financial crisis. So what can a business owner do if they have bad credit and need money?
Many are under the impression that they have to stick to traditional banks to obtain a loan. There are a variety of financing programs and solutions that help business owners get money, regardless of their credit. Instead of credit, other factors will be considered, such as credit card sales, bank deposit history, and credit partners.
Here are some things that can help you get a business loan if you don’t have good credit:
Credit card sales
In exchange for a portion of future credit card sales, some institutions are willing to lend money. If you have monthly credit card sales on a regular basis, but have bad personal credit, you may want to look into a merchant cash advance, but an unsecured business loan is always the best option.
If you run a business and bank deposits on a regular basis, simply present this information to the lender. Typically, you should be able to get an unsecured business loan that equals 10 percent of your gross annual deposits, even if you are dealing with bad credit.
Using business partners to help you get the loan can be a viable solution. If your business partner has a strong credit score, you better use it. If you don’t have a business partner, you may want to branch out and find a potential credit partner who is willing to help you. Of course, with this method, there are some risks, because you will be co-signing with the company in order to get the money you need.
So there you have it, if you have bad credit, don’t just sit back and watch your business fail. There are several things you can do to improve your chances of getting that unsecured business loan you need to keep your business running. Go ahead and find a financial institution that is known for lending money to people with bad credit.