Business Loans for Bad Credit
The economy has been trapped in an abysmal economic cycle since 2008 and as a result many businesses just can’t seem to establish a steady cash flow or generate a significant profit. A growing number of business owners require business financing in order to maintain their company until an economic turnaround occurs.
One of the biggest hurdles to getting a business additional working capital was a tight lending market established by banks. These banks are no different than any other struggling business and they are equally trying to maintain their business. However, recent developments in the lending market are changing the way small business owners get approved and financed.
Private lenders have begun financing businesses based on the monthly gross revenues. This has had profound effects as more and more businesses are eligible under this model. There have been rumors of business owners with less than a 500 FICO score being approved for a business loan. These companies are able to choose who they approve because the money is private. This means that any business owner, no matter what their credit score, has an opportunity of getting approved.
Where Can I Find Bad Credit Business Loan Companies
Most of the lending companies that provide working capital to less than perfect credit applicants are private lenders. These lenders do not have brick and mortar locations. In fact, most of these lenders only do business on the internet in an effort to keep costs down. A quick search of almost any business loan product will yield an array of bad credit business loan companies.
How Bad Credit Business Loans Work
A business owner goes online to any one of the business loan websites and submits a very short application. Usually after an hour or two one of the representatives of the lending company will contact the applicant to discuss a possible approval. It is impossible to give concrete loan costs over the phone without receiving the applicant’s bank statements and credit card statements, but after submitting those documents you should be able to receive a contract with the exact cost of the loan. The entire process from the first submission until the funds are wired can be completed in anywhere from 3 days up to a couple of weeks or more.
Trusted Bad Credit Lenders
This is a serious question when applying for bad credit business loans. Most business owners apply for the first time and have no idea where to go. The first step one should take before applying is go and check any company’s Better Business Bureau listing. Any good lender will have an excellent rating and you can at least improve your chances of receiving a fair deal. Additionally, one can look at testimonials, reviews, and message boards to accumulate a few more opinions just to be sure.
Most business owners today are eligible for business financing even if they have bad credit. Business owners should not jump at the first offer they receive believing that no other lender will give them a business loan. The truth is that there are so many private lending companies today giving business loans because banks simply refuse to fund small businesses. The proper research will get any decent business owner the financing they require.