Have A Low Credit Score? Compare the Best Bad Credit Loans Online.
Many hardworking business owners have a low credit score for reasons beyond their control. For this reason, Upwise Capital offers the best bad credit business loan solutions to grow your small business. We help those with less than perfect credit history and understand the challenges of running a business.
What is a Bad Credit Business Loan?
A bad credit business loan is a type of loan typically accessed by borrowers with lower than a 600 FICO credit score. There are a number of products your business may qualify, depending on how low your credit score actually is and what the reason is for it dropping. A popular funding choice for those business owners with low credit, is the merchant cash advance (MCA). With this product, you are advanced cash for a percentage of your monthly revenue. Bad credit business loans can be a quick and easy way to get capital with no need for collateral. They are designed to provide enough cash flow to expand, keep your business running, pay off existing debts or cover expenses. The amount and repayment structure are specifically chosen to make the loan easy to pay back.
Business Loan with Bad Credit Details
$5K - $5M
3 - 18 Months
1.10 - 1.45
As Fast As Same Day
Bad Credit Loan Pros vs Cons
PROS
- Weekly & Monthly Payments
- Only Pay Interest on the Funds you Draw
- Capital is Available Whenever You Need It
- Suitable for a wide range of business purposes
- Excellent Way to Help Build Your Credit Score
- Save on Interest by Paying Back Early
CONS
- May Need to Provide Updated Documents Before Each Draw
- Higher Rates for Lower Credit Scores
- Can Require Collateral or Personal Guarantee
- Must have 1+ Years in Business
- No More Than 3 Negative Days in your Bank Account
- Lower Approval Amounts When Compared to Other Products
Can you get a business loan with bad credit?
The short answer is yes. It’s definitely possible to get a business loan with a low credit score. In addition to your FICO score, the 2 major factors depend on the product you’re applying for, and the lender you apply with. Each lender has different qualifications, however here’s a few things you can guarantee each one will consider when reviewing your file:
- Your Monthly & Annual Revenue
- Time in Business (TIB)
- The Business Cash Flow & Debt
- What Industry You Are In
It’s important to remember, a bad credit business loans direct lender will also look into the reason your score has dropped. If you’ve recently defaulted on another loan or filed for a bankruptcy then this may influence their decision to not approve your loan.
Who Qualifies for a Bad Credit Business Loan?
Anyone with low credit score can apply for a bad credit business loan. As long as your business has a steady cash flow, a poor credit score should not prevent you from getting approved. If your small business has strong sales, this can help to decrease the effect that bad credit has on the loans terms and cost.
A common use for bad credit business loans are to pay off existing debts. There are many lenders who do not allow you to use the funds to pay off existing debts, so this is a huge advantage.
