Getting a business loan with bad credit can be a challenge, but it's not impossible. There are several options available to those with less-than-perfect credit, including microloans, short-term business loans, and business credit cards. It's important to understand the different types of loans and financing available and to research lenders before applying. Bluevine is one option for those with bad credit who need a business loan.
They can approve requests and provide funding in as little as 24 hours, but you'll need a minimum credit score of 625 to qualify. If your business has been in operation for more than a year, lenders will consider both your business credit score and your personal credit score. Microloans are another option for those with bad or fair credit. These loans are offered through non-profit community organizations, which may be more willing to work with people who have less-than-perfect credit.
Microloans are typically smaller than traditional bank loans or SBA loans, but they can still provide the capital you need to get your business off the ground. If your business is less than two years old and doesn't have good credit, you may not qualify for traditional bank loans or SBA loans. Short-term business loans are an alternative option that don't require collateral and can provide the capital you need quickly. To qualify for a short-term loan, you'll need to provide copies of your business licenses and permits, proof of business registration, and your company's employer identification number (EIN) or federal tax identification number (TIN).
Business credit cards are another option for those with bad credit who need financing for their small business. Responsibly managing a business credit card by paying your balance on time or in full can help you build your business credit. This can make it easier to qualify for larger loans in the future. It's also important to be aware of the different types of financing that don't test personal credit or that don't have high minimum credit rating requirements.
For example, some companies advertise loans for startups but don't actually offer them. It's possible to get a small business loan, but financing probably won't be obtained at the lowest interest rates. Kiva is another option for those with bad credit who need financing for their small business. Kiva offers microloans through local organizations that work in communities to research borrowers, provide services, and administer loans. While there is no minimum credit rating requirement to qualify for a Kiva loan, borrowers may be required to pay interest to the partner organization in some way.