Bad Credit Small Business Loans

Small business owners with bad credit can still get loans if they are willing to look harder for loans and pay more interest.

Banks are usually not willing to loan money to small businesses with bad credit but many other lenders will do just that. Indeed many small business owners don’t realize that there are lots of loan options for people with bad credit.

Hard money business loans

A hard money loan is the most basic kind of loan out there. In a hard money loan an individual or group of people loans a business money directly. An advantage to hard money loans is that they don’t have all the restrictions bank loans do. A disadvantage is that these loans have much higher interest and stricter terms than bank loans.

A business owner with bad credit who is making money should be able to get hard money loans. Its possible to get in touch with hard money lenders by typing hard money loans into a search engine.

Cash advance business loans

A similar loan is a cash advance this is basically a payday loan for business. The lender advances you an amount of money on the assumption that you’ll be able to pay it back in the near future with profits from the business. As with payday loans cash advances come with higher interest rates. They also have to be paid back very quickly.

Secured business loans

A variety of secured loans are available for businesses willing to put up collateral for loans. There are companies that are willing to take a business’s inventory or equipment as collateral for loans. Since these loans require collateral no credit check is necessary. A similar kind of loan uses a company’s accounts receivable as collateral. If the company doesn’t pay the loan the lender tries to collect the company’s unpaid debts.

Vendors and suppliers

Vendors and suppliers are often willing to loan money or inventory to businesses. For example a brewery might extend a line of credit on beer to a bar. Vendors do this because they want businesses to stay in business and buying from them. Many vendors will extend vendor credit or merchandise to customers even those with bad credit.

One final option that a small business can consider is to get an equity loan on its property. If the business owns its location the owner can get an equity loan to provided needed finance.

There are lots of options for small businesses with bad credit that need loans. All a business owner needs to do to find a loan is look.