Where To Get Small Business Funding With A Bad Credit Score?
Posted by cresthillcapital on November 13th, 2019
Research says that while only 25 percent of total funding comes from traditional sources, the rest 75 percent is derived from other alternative financing options.
Apart from taking help from friends and family (data shows that almost 50 percent of entrepreneurs get their initial funding from friends and family), there are several alt-lending options for small business funding for bad credit situations that you should consider.
Small business funding online: alternative funding
There are many nonbank lenders and online funding options available for small business owners. Usually, the offer amount is between ,000 - ,000. Some of these online sites are amazing resources for financing with bad credit. Since everything is online, the approval is really fast, with almost no paperwork.
Many alternative money lenders take into consideration other factors apart from credit scores to evaluate your creditworthiness. A few lenders don’t even have a minimum credit score requirement. If you’re a borrower looking for alternative financing options, then remember the following points:
Are you in business for less than a year?
If you are in business for less than a year, then there are certain alternative funding options available for you. These include business credit cards, which usually let you borrow amounts up to ,000 (depending on the lender), invoice financing, or merchant cash advance. All these are offered as unsecured funding to small business owners and are popular with clients with a bad credit history looking for funding amounts up to ,000.
Keep the following handy:
On a concluding note, know your options thoroughly. The alternative lending industry is full of diverse players, each offering a slightly different type of deal. Researching these carefully will undoubtedly save you money down the line. Remember, only when you are aware of all the options, can you make an informed financing decision.Also See: Credit Score, Bad Credit, Small Business, Alternative Financing, Funding, Financing, Credit
Federal Funding Programs
Each year billions of dollars are distributed to the general public through government, federal and private funding programs in the form of grants, low interest and no- interest loans. Click to learn more about these programs!