Bad Credit Business Loans 101

For businesses in need of fast cash, but don’t have the credit to get it through traditional means, business loans for bad credit are some of the fastest and easiest business loans available.

Read on to learn everything you need to know about small business loans for bad credit borrowers!

Bad Credit Business Loans 101
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What are Business Loans for Bad Credit?

Bad credit business loans are financing options that do not require a high FICO score for approval.

These are relatively new types of business loans compared to traditional funding options that have become available through alternative business financing.

Do Business Loans for Bad Credit Come with Guaranteed Approval?

Business loans with low FICO scores do not offer guaranteed approval. However, they do come close, with over 90% of business owners who apply for bad credit business loans accepted by NBC.

To increase your chances of getting approved as much as possible, be prepared to compensate for low FICO scores solid annual gross sales and time in business. Some bad credit business financing options also require that you offer some form of collateral, although NBC has many unsecured options that do not require any assets to be leveraged.

What Kinds of Bad Credit Business Loans are Available?

NBC offers a variety of business loans that do not require any FICO minimum for approval, including:

  • Low FICO Small Business Loans: These business loans come with either flexible or fixed payments, and terms that span 6 – 10 years.
  • Revolving Business Line of Credit: Receive immediate access to cash through a credit line. Borrow only the amount of capital you need at a time, with the ability to draw more as needed, and replace any funds used.
  • Equipment Financing: Specialized financing that helps finance equipment for businesses from virtually any industry.
  • Accounts Receivable Financing: Turn your accounts receivables into cash. Use these funds to gain cash flow between slow customer payments, and fill orders quickly and easily. These typically follow true low APR interest rates.
  • Purchase Order Financing: Sell one or more invoices to gain capital in advance of customer payments.
  • Doctor Loans and Dental Practice Financing: Specialized business loans specifically for medical, dental and healthcare uses.
  • Merchant Cash Advances (MCAs): Receive a lump sum in exchange for a portion of future sales. The amount taken from future sales fluctuates to match the amount of capital your business makes. The less you make, the less you have to pay, making MCAs a stress-free and low-cost financing option.

How to Qualify for Business Loans With Bad Credit

The approval process for low FICO takes into account different factors depending on which business loan or line of credit you apply for. For most, business owners will be happy to know that bad credit business loans are not hard to get by any means.

Here’s what you need to qualify for each type of business loan for bad credit:

Small Business Loans for Bad Credit

  • 6+ Months in Business
  • $100K in Annual Gross Sales
  • No Minimum FICO Required
  • Collateral Requirements Vary

Revolving Business Line of Credit

  • 6+ Months in Business
  • $100K in Annual Gross Sales
  • No Minimum FICO Required
  • Collateral Requirements Vary

Equipment Financing

  • No Minimum Time in Business
  • No Annual Gross Sales Required
  • No Minimum FICO Required
  • Equipment Financed Used as Collateral

Accounts Receivable Financing

  • 6+ Months in Business
  • $40K in Monthly Accounts Receivables
  • No Minimum FICO Required
  • Collateral Not Necessary

Purchase Order Financing

  • No Minimum Time in Business
  • No Annual Gross Sales Required
  • No Minimum FICO Required
  • Invoices Sold Used as Collateral

Merchant Cash Advance

  • 6+ Months in Business
  • $100K in Annual Gross Sales
  • No Minimum FICO Required
  • Portion of Future Sales Used as Collateral

Loans for Doctors & Dentists

  • No Minimum Time in Business
  • No Annual Gross Sales Required
  • No Minimum FICO Required
  • Collateral Requirements Vary

Can You Get a Business Loan with Bad Credit and Financial History?

If you were to ask a traditional lender this question, they would likely laugh you straight out of the bank. Most banks require an incredibly strong extensive financial history and stellar FICO to qualify for financing.

Fortunately, alternative business financing companies like National Business Capital do not follow traditional banking standards, and so are able to base approval not entirely on FICO, but on the bigger picture instead.

So to answer the question, yes you can get a business loan without immaculate credit and a bulletproof financial history… but only if you apply through an alternative financing company like NBC.

How Apply for Bad Credit Business Loans

All you have to do is fill out bad credit business loan application online with basic information about your business.

After that, a personal Business Financing Advisor (BFA) will call you in seconds to consult with you, and determine which bad credit business loan is best suited to accomplishing your business goals.

As soon as you hang up, your BFA will start searching for the perfect offer in the global marketplace with terms that perfectly match your business needs.

You will then compare your offers with help from your BFA.

In as little as 24 hours, you will receive access to your bad credit business loan through NBC’s expedited and simplified funding process.

Get Your Bad Credit Business Loan Today

If you’re ready to fill out your online application, click the link here: Bad Credit Business Loan Application

Or, call (877) 482-3008 for a free consultation from a live Business Financing Advisor, and ask any questions you may have.

 

About the Author, David Surrusco
David Surrusco is the Head Content Writer at National Business Capital, is best known for his work in creating what has become the best business financing blog known to mankind: The NBC Advisor.