6 Bad Credit Business Loans You Can Apply for Right Now

So, you own a business, and you need financing. You’ve applied for a loan through banks, but they’ve all said the same thing: your credit score is too low.

It’s natural for business owners in your position to assume that this means you’re out of options, but that’s actually far from the truth. 

It’s true that banks probably won’t lend to you if your personal and business credit scores are on the lower end (below 650). But, banks aren’t the only option when it comes to obtaining financing. 

Alternative and fintech lenders have filled this void, offering fast financing to business owners who have encountered credit challenges along the road to building their businesses.

There are several practical, affordable and strategic funding solutions— all available through non-bank lenders— that don’t require or focus on good credit. Most business owners sacrifice their personal credit growing their businesses, so in my opinion, your personal credit score is not the best indicator of how your business is currently doing. Instead of your credit, you can qualify for financing based on your current revenue and other factors, which is a stronger indication of your current (and future) path.

These are the 7 best loans you can qualify for with less-than-ideal credit score:

• Small Business Loans: These are straightforward short or long-term funding options with fixed, regular payments.
• Business Line of Credit: Many business owners leverage this option to cover unexpected costs and temporary shortfalls. Three other key advantages include: access to funding is instant, interest is only charged on the amount borrowed, and if the line is revolving then repaid amounts are immediately available for future borrowing. Need to hire extra staff, purchase new materials, or take advantage of a new opportunity? If you need immediate funding, and/or you constantly find yourself needing fast access to cash-on-hand, then a business line of credit is the loan for you.
• Equipment Financing: Equipment financing enables you to immediately purchase the equipment — such as machines, tools, technology, and more — that you need to improve efficiency, enhance competitive advantage, onboard more customers, and ultimately increase profitability. Equipment financing also opens the door to great tax advantages and deductions (please speak with your tax advisor).
• Inventory Financing: Similar to equipment financing, inventory financing enables you to procure inventory — or if you’re a manufacturer, raw materials that are developed into finished goods — now vs. later. This type of funding is especially valuable to channel partners, resellers and franchisees that are contractually obligated to maintain minimum stock levels at all times.
• Accounts Receivable Financing: Accounts Receivable Financing technically isn’t a loan. Rather, it’s an advance on pending accounts receivables. This not only ensures that you get paid now vs. 30, 60 or 90+ days in the future, but the lender takes on all risk if a customer fails to pay an invoice or delays invoice payments.
• Merchant Cash Advance: A merchant cash advance technically isn’t a loan. Rather, it’s an advance on future sales, which is why this option is typically suitable for B2C retail operations, restaurants, auto repair shops, hardware stores, etc. After the close of each business day, a small percentage of daily sales is automatically withdrawn and applied to the advance balance. This means that the total cost of borrowing doesn’t increase if it takes longer than anticipated to clear the balance.

When Banks Say No, We like to Say YES! 

When you apply through National, you’ll learn about the options that you qualify for in under 24 hours. One of our knowledgeable Business Financing Advisors will contact you to walk you through your options and get you funded right away.

There are no restrictions about what you can use the funds for, and you can get started growing right away!

Apply Now!

About National Business Capital & Services

National Business Capital & Services is the #1 FinTech marketplace offering small business financing and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.

Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real-time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.

We strengthen local communities one small business loan at a time.

For every deal we fund, we donate 10 meals to Feeding America!

Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital & Services and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions or mistakes.