Yes, small business funding with bad credit is possible. You can get a help from the alternative lenders. Usually, they require a minimum score of 500 to 650. You can even meet lenders, who have no specific requirements about credit score at all.
Lenders tend to focus on the “power” of your business instead of focusing on your credit score. The power includes existence time, annual revenue, availability of bankruptcies.
Here are a couple of tendencies that potential borrowers, who are looking for business funding with bad credit face:
- The lower your credit score is, the higher will be your APR. APR includes your interest rate plus all fees.
- The approval of the loan is based on the value of invoices (if the lenders will decide to check out your credit). Get fast cash from the invoice factoring if you have any unpaid invoices.
- If you have no BENEFICIAL options but have time, you should better wait and improve your credit. Get a credit report to learn your actual credit score.
Funds to Start a Business with Bad Credit
If your credit score is 500 or higher, you can apply to Fundbox, Kabbage, or Quaterspot that issue short-term business loans for working capital. By applying for these services, you can expect up to $250,000 with an annual revenue of minimum $50,000 and minimum one year in a business.
If your personal credit is 600 or higher, you should consider applying to StreetShares or BlueVine. The opportunities are almost the same as if you applied to the previous three companies but the requirements are stricter.