Can I Get A Business Loan With Bad Credit?
Yes. As mentioned above, we have a number of options available. There are a lot of different routes of funding available and the business loan market continues to grow.
Although funding through your bank might prove tricky, there are plenty of specialist lenders out there ready to support your business, despite previous credit problems.
What Are The Options?
Here are the choices available when looking to secure a bad credit business loan:
Unsecured Business Loans
Unsecured business loans used to be the domain of the high street banks, but that’s all changed with a number of peer to peer and specialist lenders entering the market. An unsecured business loan can be arranged for most businesses, as long as the loan is considered affordable.
Asset finance is a great option for businesses that have lots of assets but are struggling for capital. Asset finance can be used to raise money against existing assets, or for buying new ones. As the asset is taken as security for the loan, the risk is lower to the lender, increasing the chances of your application being accepted.
Merchant Cash Advance
Merchant cash advances are ideal for businesses that take a large amount of money each month through their card terminal. They allow you to raise money quickly and repay the lender by automatically taking a set percentage off each card sale and paying it directly to the lender. The acceptance rates for merchant cash advances are very high.
Invoice finance is another popular option for businesses with a poor credit history. If the business is owed a lot of money at any one time through invoices, there is a good chance that they will qualify for invoice finance.
Once arranged, the lender releases a high percentage of the value of any acceptable invoice issued as soon as its raised, easing the cash flow of the business. Invoice finance is an excellent tool for businesses who must accept delayed payment terms.