How to Get a Business Loan With Bad Credit

By Rohit Arora Published September 10, 2013 Small Business

Business loans bad credit

While the small business lending landscape has been steadily improving over the past year, challenges still remain, particularly for companies that have less than stellar credit histories. Many banks are not willing to provide capital to small business owners who have below average credit scores.

Continue Reading Below

There can be valid reasons why a company might have a poor credit history. During the Great Recession of 2009-10, many small businesses fell behind in payments to vendors or simply could not correct their cash flow issues quickly enough. After all, the hardest time to secure credit is when you are desperate for it. The black marks on a company’s credit history can take months — even years — to erase.

Fortunately, there are lenders who are willing to take chances on a small business owner who may have run into some short-term financial problems and startup companies that have no credit history whatsoever. However, remember the lenders are usually not brand names in the financial services industry; and the interest rates and fees can sometimes be higher than those offered by traditional banks.

Here are some financing options available to business owners with lower than average credit scores:

Merchant Cash Advance is a short-term loan paid in a lump sum to a business owner in exchange for a portion of a company’s future credit-card sales. Companies involved in this type of financing offer quick access to cash without requiring excellent credit or substantial collateral. Some cash advance companies will approve funding requests and forward money in as little as 48 hours. Interest rates are often a bit higher than what traditional lenders charge, however.

Business Credit Cards can provide business owners with poor credit histories access to debt financing. Opening a credit rebuilding credit card is one of the best ways for a business owner to repair previous credit damage.

Continue Reading Below

Microloans are made by non-profit organizations, such as Accion (http://www.accionusa.org), which will grant small loans (up to $50,000) designed to help startups owned by women and minorities, as well as companies that are established in economic empowerment zones. Loans are also available through the Small Business Administration’s (SBA) Microloan Program, which lends funds through non-profit community-based intermediary lenders. Microloans are a great option for businesses with bad credit or no credit histories because their credit requirements are typically more lenient.

The good news for small business owners is that there are ways to improve credit scores. Here are some tips for repairing damaged credit scores:

Check business credit reports periodically

A business’s credit score is derived from a complex mathematical equation designed to predict the likelihood of default. Credit ratings agencies, such as Equifax and D B, examine:

  • company size and business structure
  • industry risk
  • outstanding accounts payable balances
  • payment habits and credit utilization
  • length of credit history
  • public records (judgments, liens, bankruptcies)
  • other factors

Pay bills on time

Late or missed payments negatively impact credit scores. The most important thing is to remain current. Fortunately, recent payment history counts more than older credit problems. Thus, negative issues will eventually fade, and credit problems fade with the passage of time. However, a collection account will remain on your credit history for seven years.

Be cautious with credit cards

Even if your personal debt is problematic, building a positive history of business transactions can enable you to establish a track record of creditworthiness. For this simple reason, it is wise not to co-mingle business and personal bank accounts. Once accounts are separated, be sure that company payments are in order.

My advice to someone who is just starting to build a business credit history is to open a business credit card and make consistent, prompt payments. Some people open numerous credit cards in an effort to increase available credit. In fact, if you open too many credit accounts too soon, the impact will be negative. It is more effective to have one card and to pay it off in full each month.

Incorporate your business

Incorporating makes your business appear more serious. Once you have legally established your business, set up bills (phone, electric, etc.) in the company’s name. If you need small business loan, banks are more likely to make grant funding to a company that has an established address and pays its utility bills each month than they are to a freelancer working at home.

Pre-pay bills when possible

Vendors may offer discounts for pre-payment. If your company is in a position to pay early at a reduced rate, you can cut your operating costs and ultimately improve cash flow. As an added bonus, vendors whom you pay early will likely serve as credit references if you need them in the future.

Run a lean, profitable business

Every company’s goal is to be profitable. Manage staff schedules wisely, particularly when business is slow. Keep inventory at reasonable levels.

Banks are taking a risk by providing capital to small companies. When you apply for a small business loan or a line of credit, lenders want to be assured that you are a good credit risk. That means being fiscally prudent, paying bills on time, and building a solid credit history. These tips seem rudimentary, yet they are very important. For more information, you can visit Biz2Credit’s credit improvement page.



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  • OPEN your first 10 retail credit cards

  • Go on to Step Seven where you get EXCLUSIVE access to the most definitive resource available for funding using business credit.

  • Get REAL $5,000 PLUS Trades Reporting NOW, not $25 in Toilet Paper.

  • The TrueBuild Program has more clients and success stories than all the other services combined! Why because it’s not rocket science you just have to do it RIGHT and EXACTLY RIGHT, and we have answered every possible question, seen every mistake, heard the frustration when other services completely failed them and they had to start over. As a matter of fact if you have joined another service right off the bat you will know the difference because they probably failed and you had to learn the hard way. Exactly the right way.

    What companies use Citi to underwrite their cards and how many can you have before getting declined? What Citi backed card will, if you apply for it first and declined, lead to all other Citi backed retail cards being declined? GE backed cards; what are the exact requirements? Why do so many get declined, it’s so simple if you have good information. If they have not done it themselves it is useless. Propagating bad info like so many others is why we passionately dedicate ourselves to RESEARCH and DOCUMENTED SUCCESS. This is just one step (5) in your successful leverage of rock solid business credit.

    Can I get Business Credit cards with Bad Credit? YES.

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  • Do I need to be Incorporated? YES, we can do it for you for the state fees plus a very minimal charge.

  • About how much Credit can my Business obtain if I can’t or won’t Personally Guarantee anything? $75k plus cars, homes, boats, equipment and most anything a business needs.

  • Should I join the Program if I have good personal credit YES! 90% of owners fail and so does their credit! PLUS you have to have good Business Credit to get any sort of SBA or Micro Finance.

  • Like them or not the Administration just allocated $3BILLION to help banks and business credit underwriters. YES!

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  • Bad Credit Business Loans & Financing Solution

    Stop applying for Bad Credit Business Loans!

    Acquiring a business loan is not easy for businesses with bad credit. Getting approved for a business loan from a bank with a credit score of 650 or less can be extremely difficult. Unfortunately for young businesses bad credit is a common plight. Many entrepreneurs quickly learn that their initial business loan was helpful in establishing and starting up – but expansion, maintenance or even growth requires additional funding which may not always be available. New small businesses tend to damage their own chances for secondary financing during slow beginnings when fixed loan repayments are not always made on time. Other factors such as personal credit may also damage ones ability to be approved for a business loan as most lenders (banks and other financial institutions) look at a combination of both personal and business credit. Many business owners turn to private lenders, small loan companies, or even family or friends. Acquiring the necessary funds through these private channels is usually not realistic as funding amounts are typically limited.

    Get a Business Cash Advance: Business Loan Alternative

    Business cash advances are the best option for merchants with poor credit in need of small business financing. Cash advances offer the following benefits not available through bank bad credit business loans:

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    How Fast Can I Get a Small Business Credit Card?

    Q: I just started a new business. How long do I have to wait before I can get a small business credit card?

    A: You don t have to wait until your business has been established for a specific period of time before you apply for a small business credit card. Most card issuers will base their decision on your personal credit scores, along with financial information you provide on your application, so as long as you have good personal credit scores and meet other requirements (such as income) you should qualify.

    In fact, now may be the perfect time to get a small business credit card. Separating your business and personal finances from the outset offers a number of advantages. For one thing, you ll find bookkeeping easier, helping you avoid tax-time headaches that can arise when you mingle accounts. Plus, if you have incorporated your business, keeping accounts separate will help protect the integrity of the corporate structure. And credit cards offered to small business owners often come with rich rewards and generous sign up bonuses.

    Using a business credit card provides another valuable benefit. It can help you weather bumps in cash flow while protecting your credit. Most business credit cards don t report activity to owners personal credit reports unless they default. (This chart explains how the major issuers report business cards to personal credit.) That means if one month you need to charge a large amount to stock up on inventory, for example, your personal credit scores are immune from a high balance that can hurt your scores.

    That doesn t mean you shouldn t carefully watch what you spend on one of these cards, though. You ll no doubt sign a personal guarantee when you apply, so if your business folds before you pay off the balance, you can t just walk away from the debt. In addition, most issuers share account data with business credit reporting agencies, which means large balances or late payments can hurt your business credit scores. On the other hand, using one of these cards responsibly will help build strong business credit scores, which will serve you well down the road should you seek additional financing.

    If you recently left your job and you have no income to speak of, however, you may have a hard time qualifying. (Keep in mind, though, that issuers may allow you to include other income available to you, such as your spouse s income.) Applying before you quit your day job often makes sense.

    Also, business credit cards are not covered by the CARD Act, the federal law that protects consumers from costly gotchas like interest rate hikes at any time and for any reason, or shifting due dates. But many card issuers have extended some or most of these protections to their small business cardholders as well. (You might want to read that cardholder agreement and save a copy to make sure you understand the terms. It is your loan contract, after all.)

    Overall, though, the pros of getting a small business card when you start your business will usually outweigh the cons. There s no need to wait.



    Business Credit Reports

    The collection of information about a potential customer enhances the quality of the credit granting decision. That same information also has strategic implications: it can strengthen a company s understanding of its customer base and lead to expanding that base. The credit department is, in effect, an information warehouse within any company.

    Gathering the most predictive information about a customer beforehand, in order to assure that a company will get paid, will reduce the risk of playing the guessing game. NACM Affiliates can provide you with the most up-to-the-minute information about your customers that s available in the business today saving time and money, and ensuring a completely sound and informed credit decision. NACM Affiliates are industry leaders in providing predictive data and credit reporting tools to companies that use credit information to compete in their marketplace.

    NACM understands that business credit reports are the keystones that help credit professionals make sound credit decisions. NACM Affiliates can provide credit professionals with the most complete, objective and accurate reports available.

    Business Credit Report Services:

    A comprehensive business credit report can provide detailed information about a business, which may include a summary of company ownership, extensive trade payment information, commercial banking relationships, public record information and federal government information.

    Sometimes, information about the principal s creditworthiness is needed before the decision to extend business credit can be made.

    For a quick, effective assessment of low-balance account transactions, summaries may be available, providing a wealth of information in a condensed format.

    For high-volume, quick-turnaround account transactions, scoring reports may help streamline credit decisions. These easy-to-read, one page reports summarize a business credit report, including background information, trade payment and public record data. This report is particularly objective in its rating system by providing analysis based on specific criteria consistently.

    Research shows that reports combining business and owner credit scores are more predictive than business or consumer-only scoring models. Many Affiliates offer a summary of information on both the business and the business owner(s) so that better credit decisions can be made.

    International Credit Reports

    NACM Affiliates and FCIB, NACM s international association, provide comprehensive, up-to-date business credit information on companies throughout the world. International credit reports include business background information, details about a company s structure, key personnel, payment behavior and financial assets and liabilities.

    Recent crises in different regions of the world have proven the importance of on-going monitoring of economic and political developments around the globe. More than 80 countries of interest have been selected for the basic service. These reports will reflect the most current information available. FCIB Country Risk Reports are an invaluable tool in country risk assessment. FCIB Country Reports:

    • Focus on current and forecasted economic and political trends
    • Focus on regulatory issues
    • Include a country risk rating
    • Provide a credit insurance perspective
    • Unique FCIB value added feature payment terms and collection experience based on actual FCIB survey

    An account monitoring service alerts subscribers to important new information concerning its customers. This service flags changes in payment habits and indicates any legal items, UCC filings or derogatory items.

    Tracking down a debtor can be easy and inexpensive with the NACM network of public record data. Many Affiliates can tap into information from a variety of sources, such as vehicle registrations and various licensing bureaus.

    • Business credit reports


    business loans for bad credit

    Business loans for bad credit

    Small Business Loans

    Shield Funding offers a variety of Business Loans for small business owners. Our business funding programs feature competitive rates and flexible terms. Get your business loan today! Call for a free quote (888) 882-6117 or Apply Online

    Shield Funding Business Loans

    Our company is one of the largest and well respected sources of capital in the country. We have assisted thousands of small business owners in their pursuit of financing and because of our experience and resources we get business owners the capital they need when most lenders cannot. Traditional financing programs and many private lenders have a very long and difficult approval process that far too often ends in a denial. Our business loan application process is fast and easy and we have very high approval rates.

    The reason our loan programs are so successful is because we do not require great credit or collateral, impressive tax returns, lofty profit and loss statements, and we do not have unattainable debt-to-income requirements. We help businesses get approved for small business loans based on a company’s financial strength and potential. What this means is that if you have an existing business that generates monthly gross revenues you are likely eligible.

    At Shield Funding we make applying for, and receiving a small business loan relatively simple. We have an easy to complete online application to begin the process or if you prefer we can take your application over the phone. The typical approval process is about 24 hours and funding can occur within the same week that you apply. Get the working capital you need to grow your business with a company you know you can trust.

    Business loans for bad credit

    Small Business Loans

    Shield Funding offers small business owners a fast and easy way to obtain small business loans. All of our loans are unsecured so there is no need for collateral, and we offer very competitive rates and terms for borrowers at all credit levels. Our business loans are a great alternative for small business owners that do not meet traditional financing requirements or for business owners that want to avoid the long and drawn out process involved with obtaining a loan from a bank.

    Bad Credit Business Loans

    Our bad credit business loans are a great opportunity for small business owners that need business funding to meet short term financial obligations but have a very poor credit profile. Our main requirement is that you have an existing small business that has generated monthly revenues for at least two months. These business loans for bad credit are unsecured, there are very few documents needed for an approval, and business funding can occur in a matter of days. Learn more about bad credit business loans.

    Merchant Cash Advance

    A merchant cash advance with Shield Funding is an excellent way for merchants to get immediate funding for their business. We offer competitive rates for both good and bad credit borrowers, payment terms are flexible, and the approval process is extremely fast. This is a very low document business loan alternative that only requires a small business borrower to accept credit cards from their customers for a period of at least two months.

    Business Loans for Women

    At Shield Funding we are a leading resource for small business loans for women. This program was established to support female entrepreneurs that want to improve or expand their company. The application process involves a small amount of paperwork, both good and bad credit applicants are eligible, and the only major requirement is that the small business has a female owner or partner and the company is currently generating revenue for two months.

    Easy application process

    Bad credit options

    High approval rating

    All business types approved

    Most competitive rates

    financing up to 1 million

    Funding in 2 to 3 days

    No collateral required

    Friendly sales team

    A trusted financial resource since 2008

    Match any competitor offer

    24 month programs

    Help building your credit

    Business loans for women

    Bad credit no problem The loans are unsecured

    Get approved within 24 hours

    Can pay off existing loans

    Short term loans available

    Private and secure

    ACH loans available

    Respected in our industry

    30 days open approval

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    Shield Funding offers a variety of Business Loans for small business owners. Our business funding programs feature competitive rates and flexible terms. Get your business loan today! Call for a free quote (888) 882-6117 or apply online.



    How to Get a Business Loan With Bad Credit

    By Rohit Arora Published September 10, 2013 Small Business

    Business loans for bad credit

    While the small business lending landscape has been steadily improving over the past year, challenges still remain, particularly for companies that have less than stellar credit histories. Many banks are not willing to provide capital to small business owners who have below average credit scores.

    Continue Reading Below

    There can be valid reasons why a company might have a poor credit history. During the Great Recession of 2009-10, many small businesses fell behind in payments to vendors or simply could not correct their cash flow issues quickly enough. After all, the hardest time to secure credit is when you are desperate for it. The black marks on a company’s credit history can take months — even years — to erase.

    Fortunately, there are lenders who are willing to take chances on a small business owner who may have run into some short-term financial problems and startup companies that have no credit history whatsoever. However, remember the lenders are usually not brand names in the financial services industry; and the interest rates and fees can sometimes be higher than those offered by traditional banks.

    Here are some financing options available to business owners with lower than average credit scores:

    Merchant Cash Advance is a short-term loan paid in a lump sum to a business owner in exchange for a portion of a company’s future credit-card sales. Companies involved in this type of financing offer quick access to cash without requiring excellent credit or substantial collateral. Some cash advance companies will approve funding requests and forward money in as little as 48 hours. Interest rates are often a bit higher than what traditional lenders charge, however.

    Business Credit Cards can provide business owners with poor credit histories access to debt financing. Opening a credit rebuilding credit card is one of the best ways for a business owner to repair previous credit damage.

    Continue Reading Below

    Microloans are made by non-profit organizations, such as Accion (http://www.accionusa.org), which will grant small loans (up to $50,000) designed to help startups owned by women and minorities, as well as companies that are established in economic empowerment zones. Loans are also available through the Small Business Administration’s (SBA) Microloan Program, which lends funds through non-profit community-based intermediary lenders. Microloans are a great option for businesses with bad credit or no credit histories because their credit requirements are typically more lenient.

    The good news for small business owners is that there are ways to improve credit scores. Here are some tips for repairing damaged credit scores:

    Check business credit reports periodically

    A business’s credit score is derived from a complex mathematical equation designed to predict the likelihood of default. Credit ratings agencies, such as Equifax and D B, examine:

    • company size and business structure
    • industry risk
    • outstanding accounts payable balances
    • payment habits and credit utilization
    • length of credit history
    • public records (judgments, liens, bankruptcies)
    • other factors

    Pay bills on time

    Late or missed payments negatively impact credit scores. The most important thing is to remain current. Fortunately, recent payment history counts more than older credit problems. Thus, negative issues will eventually fade, and credit problems fade with the passage of time. However, a collection account will remain on your credit history for seven years.

    Be cautious with credit cards

    Even if your personal debt is problematic, building a positive history of business transactions can enable you to establish a track record of creditworthiness. For this simple reason, it is wise not to co-mingle business and personal bank accounts. Once accounts are separated, be sure that company payments are in order.

    My advice to someone who is just starting to build a business credit history is to open a business credit card and make consistent, prompt payments. Some people open numerous credit cards in an effort to increase available credit. In fact, if you open too many credit accounts too soon, the impact will be negative. It is more effective to have one card and to pay it off in full each month.

    Incorporate your business

    Incorporating makes your business appear more serious. Once you have legally established your business, set up bills (phone, electric, etc.) in the company’s name. If you need small business loan, banks are more likely to make grant funding to a company that has an established address and pays its utility bills each month than they are to a freelancer working at home.

    Pre-pay bills when possible

    Vendors may offer discounts for pre-payment. If your company is in a position to pay early at a reduced rate, you can cut your operating costs and ultimately improve cash flow. As an added bonus, vendors whom you pay early will likely serve as credit references if you need them in the future.

    Run a lean, profitable business

    Every company’s goal is to be profitable. Manage staff schedules wisely, particularly when business is slow. Keep inventory at reasonable levels.

    Banks are taking a risk by providing capital to small companies. When you apply for a small business loan or a line of credit, lenders want to be assured that you are a good credit risk. That means being fiscally prudent, paying bills on time, and building a solid credit history. These tips seem rudimentary, yet they are very important. For more information, you can visit Biz2Credit’s credit improvement page.



    business loans bad credit

    Business loans bad credit

    Small Business Loans

    Shield Funding offers a variety of Business Loans for small business owners. Our business funding programs feature competitive rates and flexible terms. Get your business loan today! Call for a free quote (888) 882-6117 or Apply Online

    Shield Funding Business Loans

    Our company is one of the largest and well respected sources of capital in the country. We have assisted thousands of small business owners in their pursuit of financing and because of our experience and resources we get business owners the capital they need when most lenders cannot. Traditional financing programs and many private lenders have a very long and difficult approval process that far too often ends in a denial. Our business loan application process is fast and easy and we have very high approval rates.

    The reason our loan programs are so successful is because we do not require great credit or collateral, impressive tax returns, lofty profit and loss statements, and we do not have unattainable debt-to-income requirements. We help businesses get approved for small business loans based on a company’s financial strength and potential. What this means is that if you have an existing business that generates monthly gross revenues you are likely eligible.

    At Shield Funding we make applying for, and receiving a small business loan relatively simple. We have an easy to complete online application to begin the process or if you prefer we can take your application over the phone. The typical approval process is about 24 hours and funding can occur within the same week that you apply. Get the working capital you need to grow your business with a company you know you can trust.

    Business loans bad credit

    Small Business Loans

    Shield Funding offers small business owners a fast and easy way to obtain small business loans. All of our loans are unsecured so there is no need for collateral, and we offer very competitive rates and terms for borrowers at all credit levels. Our business loans are a great alternative for small business owners that do not meet traditional financing requirements or for business owners that want to avoid the long and drawn out process involved with obtaining a loan from a bank.

    Bad Credit Business Loans

    Our bad credit business loans are a great opportunity for small business owners that need business funding to meet short term financial obligations but have a very poor credit profile. Our main requirement is that you have an existing small business that has generated monthly revenues for at least two months. These business loans for bad credit are unsecured, there are very few documents needed for an approval, and business funding can occur in a matter of days. Learn more about bad credit business loans.

    Merchant Cash Advance

    A merchant cash advance with Shield Funding is an excellent way for merchants to get immediate funding for their business. We offer competitive rates for both good and bad credit borrowers, payment terms are flexible, and the approval process is extremely fast. This is a very low document business loan alternative that only requires a small business borrower to accept credit cards from their customers for a period of at least two months.

    Business Loans for Women

    At Shield Funding we are a leading resource for small business loans for women. This program was established to support female entrepreneurs that want to improve or expand their company. The application process involves a small amount of paperwork, both good and bad credit applicants are eligible, and the only major requirement is that the small business has a female owner or partner and the company is currently generating revenue for two months.

    Easy application process

    Bad credit options

    High approval rating

    All business types approved

    Most competitive rates

    financing up to 1 million

    Funding in 2 to 3 days

    No collateral required

    Friendly sales team

    A trusted financial resource since 2008

    Match any competitor offer

    24 month programs

    Help building your credit

    Business loans for women

    Bad credit no problem The loans are unsecured

    Get approved within 24 hours

    Can pay off existing loans

    Short term loans available

    Private and secure

    ACH loans available

    Respected in our industry

    30 days open approval

    Business loans bad credit

    Shield Funding offers a variety of Business Loans for small business owners. Our business funding programs feature competitive rates and flexible terms. Get your business loan today! Call for a free quote (888) 882-6117 or apply online.