If you are running a business, have bad credit and need a loan, you are in a sort of double quandary. That doesn’t mean that you can’t get the help that you need to keep your business growing and eventually restore your good credit rating.
It might take a little time, but business loans for bad credit do exist, you just have to know where to look.
Start by looking aroung here, we have plenty of options right here on this website. This may well be your first step in revitalising your business, so why not give it a try?
Getting Business Loans while having Bad Credit
Here are some tips on finding business loans for people with bad credit:
Don’t rely on credit cards or bank loans
These sources comprise only about a quarter of the funding needs for budding entrepreneurs and other business owners. This can be seen as kind of a traditional, easy approach, but the interest rates are often killers. If you have great confidence in your future business prospects, then you can opt for a home equity line of credit to fund your enterprise.
Don’t overlook friends and family
For many business owners, this is definitely not an option, but if you can swallow your pride for a time and you have people in your inner circle that believe in you and your business, then this could be a great way to secure a loan.
People that trust you will not worry too much about your credit score and will understand that you are going through a temporary hard time. If you have built good relationships in the business community near you, or have long-time partners, make a list of people that you can talk to about getting you through this difficult time.
Again, you will probably have to clear your throat a few times as you ask for a loan, but don’t let pride bring your business down when you can obtain funding from people who care about you.
You should also know that if you use a loan management company and are careful to report your payments to credit bureaus, even loans from friends and family can help you to re-build your rating.
Check out web-based lenders
The Web is full of non-bank lenders that can offer micro-loans to you, often in the $5,000-$25,000 range. The kicker is that business loans for people with bad credit often have high interest rates. Because of your current predicament, you might have to get on the Net and swallow interest rates higher than you are accustomed to if you want to keep your business rolling.
Getting a business loan while having a bad credit score might result in terms that make you a little queasy, but if such loans can sustain you through a rough patch and help get you back on the road to a solid credit score, then it will all be worth it. You might need tough terms temporarily to get to the point where you can get great terms again, once your rating has risen and your business is humming.