Running a business is not easy and there are times when cash flow can become a problem. Getting a loan is one of the best options, but you are not qualified to get one from a bank because of your bad credit rating. The last time you checked your score was below 600. No need to worry because there are lenders who are willing to give out loans for businesses, even if hey have a bad credit score. We will look at some lenders in order to find the best loan company for bad credit.
There are things that we need to consider before we choose a lender for bad credit: maximum loan amounts, speed of approval, terms of payment and credit score requirements.
You also have to choose a lender who has a track record of funding bad credit on a regular basis. There are those who have set up easy qualification requirements, but don’t approve a huge percentage of applicants who meet those requirements. This is a waste of time for borrowers, so better skip lenders who do this.
The best loan company for bad credit will vary depending on a borrower’s situation. The lenders we have come up with all provide quick cash and they don’t ask for any security for the loan to get you approved. Here are 2 of the best lenders out there for you to consider:
Fundbox may be one of the best loan options for bad credit customers with a good revenue stream and who need to borrow up to $100K. They have 2 lines of credit, one that you can avail based on your financial statements and another that will fund you based on your outstanding customer invoices. Funds can be released in 1 day.
You will have a greater chance of approval if your business has been getting a steady stream of growing income for the past 3 to 6 months.
The Annual Percentage Rate with Fundbox is between 38% to 54% with no hidden charges. If you pay off your loan earlier, the lower the amount will be for you because they have waived off prepayment charges. This will give you savings on the interest and fees if you paid full term.
Terms are from 12 or 24 weeks and paid weekly. Maximum amount of loan is $100K. Approval and release of funds may take 1 to 3 business days.
Fundbox does not come up with credit checks so there is no minimum credit score requirements. You just need to be in business for a minimum of 6 months. They have a custom business health checker that will perform an assessment once you connect your bank account. This will determine how much your loan will be and if you qualify.
You can apply online by filling out a form in minutes. They would ask for your business bank account in order to run a custom check to find out if you are qualified for a loan. This will only take a few hours and you can get your funds as quickly as 1 day.
OnDeck may be one of the best loan company for bad credit for businesses who need up to $500K and with a credit score of 500. They perform credit checks, but focus more on your recent revenue streams.
The Annual Percentage Rate for OnDeck loans are from 30% to 50%. There are those who can qualify for better interest rates. Payment terms are between 3 months and 3 years. Payments are either daily or weekly, based on your credit profile. Funds can be released in a day.
In order to have a higher chance of approval, you have to be in business for at least 1 year and your revenues have reached $100K. These are the minimum requirements plus the 500 above credit score.
Application can be done online which will require you to connect your bank account. Once the information is verified, your eligibility will be checked. It will take at least a day to know if you qualify and loans will be released in 1 to 3 days.
Having bad credit scores does not mean the end of the world when it comes to getting a loan for needed funding for your business