Bad Credit Business Loans!

Many Different Programs Available!

Bad Credit Business Loans!

Bad credit does not prevent you from getting a business loan. Even with bad credit you have many options when it comes to locating financing for your small business. Here is a brief list of some of the small business financing options readily available on the internet to business owners and start-up entrepreneurs with bad credit.

Secured Business Loans

Secured Business Loans require collateral such as real estate, business equipment, and/or accounts receivables.

Business Lines of Credit

A Business Line of Credit is a revolving account that can be used to access working capital up to a specific credit limit. Business credit cards are a form of business line of credit.

Small Business Startup Loans

Business Startup Loans are used by small business owners to develop an idea, buy an existing business or franchise, or bring your particular product(s)/service(s) to the marketplace. A business startup loan can be in the form of a secured loan, unsecured business loan, or business line of credit.

Working Capital Business Loans

Working capital business loans are for already existing businesses. Working capital can be used to buy equipment, inventory, or advertising, meet payroll, cover minor repairs and maintenance, or any other business need. Business owners with existing businesses for more than 2 years can get bad credit business loans for working capital.

SBA Loans

The Small Business Administration (SBA) was created by U.S. Congress in 1953 to aid and assist the development of small businesses. SBA administers three separate, but equally important loan programs. SBA sets the guidelines for the loans while SBA's partners (Lenders, Community Development Organizations, and Microlending Institutions) make the loans to small businesses.

SBA assists banks and other lending institutions called intermediaries in providing business loans to borrowers with bad credit who cannot otherwise secure financing for their small business.

Merchant Cash Advance

Merchant Cash Advance providers work in conjunction with merchant account providers. Retail businesses that accept Visa & Mastercard as a form of payment can sell a portion of their future credit card sales for a lump sum of immediate cash. The business owner receives a lump sum of cash from the cash advance provider. The merchant account provider will then deduct a small percentage of each future credit card transaction until the advance is made whole.

These types of loans or cash advances are based on the business cash flow, not the credit history of the business owner which makes it an ideal choice for retail business owners with bad credit who need funding or working capital.

Invoice Factoring

Invoice Factoring is the process in which a business converts unpaid invoices or accounts receivable into immediate cash by selling them to a third party finance company known as a Factor. Instead of waiting 30, 60, or 90 days for your customers to pay, you send a copy of the invoices to the factoring company. The factoring company will then advance your business up to 95% of the face amount of the invoices. Then factoring company takes the responsibility for collecting payment from your customers.

Factoring companies take into account the credit history of the collection account not the business owner, therefore business owners with bad credit can still factor their accounts receivable for immediate cash.

Commercial Mortgage Loans

Commercial Mortgage loans are used to buy, renovate, or refinance commercial buildings. There are many bad credit business loans available for commercial properties because the property serves as collateral to secure the loan.

Equipment Leasing

When a small business owner needs machinery, heavy equipment, or motor vehicles to operate their business, equipment leasing or equipment financing companies offer an alternative to paying cash. In most cases you can lease or finance new or used equipment. If you own your business equipment, you can sell it to an equipment leasing company and lease it back to improve your cash flow.

Because the equipment is being used as collateral, business owners with bad credit can qualify for an equipment lease.