Unsecured Bad Credit Loans for Business

There are a wide variety of unsecured loans available for businesses that have bad credit.

Businesses that are willing to pay more for interest and have a good cash flow should have no problem getting unsecured loans even with bad credit. Most of these loans will have to be paid back fairly quickly but they can be applied for online with minimal paperwork.

Best of all several different kinds of unsecured loans are available for businesses with bad credit. An unsecured loan is a loan not secured by collateral.

Business Cash Advance

A business cash advance is a cash loan that is deposited directly into a business’s bank account. Business cash advances are similar to payday and fast cash loans made to private individuals.

Cash advance lenders generally charge fairly high interest and want their loans paid back quickly. One common tactic used to guarantee that these loans are paid back is that the business agrees to let the lender take the amount of the loan plus interest out of their bank account electronically on a certain day.

Hard Money Loan

A hard money loan is a cash loan made directly to a business by a company or private individual. It’s called a hard money loan because cash is advanced and the lender expects to be repaid in cash.

Hard money lenders maybe willing to loan to businesses with bad credit that prove they have a lot of cash flow. The borrowers will have to present the lender with documents such as bank statements or sales receipts that can verify the cash flow.

There are a large number of websites that connect businesses with hard money lenders.

Investors

It maybe possible for a business that has a good cash flow or compelling business plan to get a cash investment from a private investor. There are two kinds of professional investors who loan money to small businesses angel investors and venture capitalists.

Angel investors loan money to start up businesses especially in the technology sector. Most angel investors want their loan secured with a share of the business but it maybe possible to negotiate a deal for an unsecured loan. Venture capitalists provide variety of loans to businesses, they maybe willing to loan money to businesses with a good cash flow. These investors can easily be located online.

Community Investors

Many businesspeople will be able to borrow money in their community or within their ethnic group. Community oriented members of groups like the Chamber of Commerce or the Rotary might be willing to lend money to local businesses.

Some ethnic groups and immigrant communities from some countries have networks of people who lend money to their members. Especially to small businesses run by people from the home country.

Relatives and friends may also be willing to lend money to a person with bad credit. Especially one who has a cash flow to pay it back.

Unsecured loans are out there for businesses that want them.