Bad credit business loans are helping entrepreneurs start and grow businesses that they wouldn’t have been able to before, if only because traditional lenders get very uneasy handing over these kinds of loans to anyone with less than picture-perfect credit.

 

In today’s ultra competitive business environment, however, the demand for capital has increased dramatically. Nontraditional lenders, alternative lenders, and even “legacy” lending institutions like banks and credit unions are getting a lot more comfortable with bad credit business loans – and they have to after the credit crunch and Great Recession did such a number on people’s credit scores in the mid-2000s.

 

It wasn’t all that long ago that trying to find any lender – traditional or alternative – willing to roll the dice on a business owner with poor credit (defined by FICO as a credit score below 629) was next to impossible.

 

Today nothing could be further from the truth.

 

In fact, there are more opportunities to find business loans for bad credit entrepreneurs now than ever before – and we aren’t just talking about predatory loans designed to take advantage of those in financial situations with few alternatives.

 

No, right now you can leverage some of the best small business loans with bad credit that have ever been made available. We break down some of the best options in this quick guide.

 

Breaking Down the Top Bad/No Credit Business Loans

Finding the right bad credit business loan today isn’t a problem because there are so few options to pick and choose from – but because there are so many!

 

On top of that, there are more lenders offering these kinds of financial packages than ever before as well. Even traditional banks and credit unions are starting to offer business loans for poor credit entrepreneurs, something that would have been impossible to imagine even just 10 or 15 years ago.

 

That being said, the four options we break down in this quick guide or where you’re going to want to focus your attention when you’re looking for small business loans, no credit check needed.

 

Short-Term Bad Credit Business Loans

 

Short-term loans for bad credit are usually include terms that can stretch between three months and 18 months, though in some situations you might be able to take advantage of a short-term loan with a term that stretches over 24 months (though these are quite rare).

 

These loans are some of the more expensive bad credit business lending opportunities you can pick and choose from, and you’re going to be looking at a high APR with these types of loans on top of the daily or weekly Automated Clearing House payments.

 

In exchange, however, you get near instant access to the funding you are looking as well as a dramatically simplified and streamlined loan application process. On top of that, most financial services that offer these kinds of loans will provide lending to those with credit scores as low as 500 – and you won’t find too terribly many traditional lenders willing to die this deep.

 

Short-Term Bad Credit Business Lines of Credit

 

More attractive than short-term loans, particularly short-term business loans for bad credit entrepreneurs, a business bad credit line of credit is going to provide fast access to flexible working capital that works on a “revolving door” kind of limit.

 

After you are approved for a specific amount of credit you will have access to draw from that line as need be, only worrying about repaying what you borrow from this line of credit – but also always having the remainder of that line of credit available should you need to use it.

 

This kind of small business loan with bad credit scores also hand pretty high APR interest rates attached to it, but anyone with a credit score of at least 550 are usually going to be eligible for approval with this type of financing.

 

Those that want to add a little bit of extra security and stability to their cash flow without having to navigate traditional short-term installment loans will want to take a closer look at a line of credit.

 

Bad Credit Invoice Financing

 

Collateral – particularly in the form of your outstanding invoices – opens up a world of opportunity when it comes to bad credit business loans, as the security you are bringing to the table in the form of your collateral makes you a lot less riskier in the eyes of lenders.

 

Essentially a “self secured” type of financing for business owners and entrepreneurs with less than picture-perfect credit, you will be able to take advantage of invoice financing packages that provide cash advances worth upwards of 85% of the entire outstanding invoice totals.

 

This can give you access to capital almost immediately to cover operating expenses, to grow your business, or to take advantage of opportunities that might have disappeared with any significant delay. You’ll also be able to automate the repayment of invoice financing through the ACH process we highlighted earlier to really put your financing on autopilot.

 

If you do a lot of invoicing in your business this has to be one of the most attractive no credit business loans available.

 

Merchant Cash Advances

 

Merchant Cash Advances (MCAs) are incredibly popular small business loans, no credit check necessary opportunities for businesses that handle a lot of credit card and debit card transactions.

 

Similar to the Invoice Financing packages we highlighted above, these kinds of small business loan provide entrepreneurs with access to a “lump sum” of capital based on an average of the debit and credit card transactions they take in over a 30 day block of time.

 

Entrepreneurs then pay back this loan in chunks on a daily basis (plus interest and fees) from their daily credit and debit card sales, automating the process and again streamlining things significantly so that busy business owners have a lot less to worry about and manage.

 

Any operation that processes credit cards and debit cards will become immediately eligible for these kinds of lending opportunities, even those with absolutely horrid credit – or those with no credit whatsoever.

 

How You Can a Business Loan if You have poor credit?

At the end of the day, finding the best business loans for poor credit entrepreneurs (or no credit entrepreneurs) is at the same time easier than ever before because there are so many options and a lot harder as well, because some options are going to get very expensive in a hurry.

 

By researching your options and really being certain that you are pulling the trigger on the perfect financing for your specific needs and your specific situation you’ll be in a much better spot.

 

No longer do you need fantastic credit to get financing that can turn your entrepreneurial dreams into a reality. Instead, choose from amongst the four options we highlighted above – the best bad credit business loans available – and you secure the financing that helps you create your dream financial future faster than you would have thought possible!