Bad Credit Business Loans

LEARN MORE IN OUR BIZFLY BAD CREDIT BUSINESS LOANS GUIDE BELOW

Bad credit or a limited credit history can be a big impediment to securing funds from lenders for many small businesses. Without credit and capital, it can be difficult or impossible to grow.

Without loans and credit products, however, it’s impossible to build up a robust credit file and good credit score. Bad credit business loans can be the perfect solution, and are often the only source of funding that businesses with poor credit can turn to for help.

Bad Credit Business Loans Guide

Crucially, because they are unsecured, and typically have a low minimum credit score requirement, they can be one of the best and most accessible forms of funding for those with bad credit.

Unsecured small business loans with bad credit can have the additional benefit of helping to drastically improve a business’ credit score over the long-term, increasing access to capital or improving interest rates for future loan activities.

What Are Bad Credit Business Loans?

Bad credit business loans are generally unsecured loans that are available to businesses with lower credit score requirements than those imposed by traditional lenders or loans.

In fact, in many cases, a bad credit business loan is one of the only financing options that may be available to businesses with bad credit or limited credit history.

Many traditional lenders and loan products turn down those who don’t have a certain high credit score or large bank account to begin with. Bad credit business loans allow small businesses of all types to gain access to valuable capital for their operational and investment activities.

Typically, the minimum eligible credit scores for a bad credit business loan are several hundred points lower than a traditional business loan from a major bank or financial institution.

How Does Paying Back a Bad Credit Business Loan Work?

Paying back a bad credit business loan is simple from a technical standpoint. Depending on the agreed-upon terms, the lender will debit your bank account either daily, weekly, or monthly over the course of the loan duration.

The amounts can be calculated easily based on the principal, interest rate, and loan duration. This ensures that business owners don’t need to arrange online payments, send checks or invoices, or otherwise waste their time making repayments manually. Instead, you can focus on running your business and being successful.

How Do I Qualify for a Bad Credit Business Loan?

As bad credit business loans are designed for businesses with bad credit scores or limited credit history, the credit score minimum requirement to qualify is quite low compared to other loan products.

There are a few other minimum requirements as well (and there may be higher or more stringent requirements for more favorable terms, higher loan amounts, and other circumstances – even loan and every business are unique).

At BizFly Funding, the three most basic qualification requirements for a bad credit business loan are:

  • Estimated Business Loan Term: 2 – 18+ Months
  • You must have been in business for at least 2 months as of the time of application
  • You must have a minimum credit score of 500
  • You must generate at least $8,000 in monthly revenue (higher amounts may be required for larger loans or more favorable loan terms)
  • Rates: 12% – 45%*
  • Min Business Loan Amount: $5,000
  • Max Business Loan Amount: $1,000,000
  • Max Number of Negative Days: 3 Within a Month
  • Rates depend on duration of funding

Are These Small Business Loans With Bad Credit Only Suitable for Those With Bad Credit?

Accessing small business loans with bad credit is not, of course, only limited to those businesses with bad credit. However, more favorable terms (lower interest rates, higher borrowing limits, and so on) are typically available to businesses with higher credit scores and otherwise more solid financials, business history, and so on.

Therefore, while a bad credit business loan may be available for a business with high credit scores, it may not be the ideal choice. At BizFly Funding, we’ll work with you, so long as you meet the minimum requirements for a loan, to find the best options in our portfolio to suit you and your business’ unique individual needs.

What Are the Common Uses for Bad Credit Business Loans?

Bad credit business loans do not have restrictions on the use of their funds, so businesses can deploy them how they best see fit. 

Often, they are one of the only types of business funding that a business with bad credit can qualify for, and therefore may be put to a variety of uses within the business financing structure. This is similar to most other unsecured loan products.

However, the most advantageous and common uses of bad credit business loans include:

  • A bad credit business loan gives you an opportunity to radically improve your credit score. Successfully receiving and repaying a bad credit business loan will have a positive impact on your credit score, and open up additional business financing opportunities.
  • Paying off rent, leases, and other expenses, especially if they are overdue or in financing or collections, is a very common use for bad credit business loans.
  • Consolidating higher-interest debt, or smaller loans held by multiple lenders, is another common use of a bad credit business loan.
  • Paying for unexpected bills, circumstances, business needs, and so on is also a typical use for a bad credit business loan. This may include repairing broken-down assets, paying for temporary staff, making a strategic inventory, personnel, or other asset investment.

Why is a Bad Credit Business Loan a Good Business Decision?

A bad credit business loan can be a good business decision in the vast majority of cases. While taking on additional debt can always give you pause, the positive benefits of a bad credit business loan often outweighs any debt risk.

Being able to access capital is crucial – many businesses fail purely as a result of lack of sufficient funding to expand, purchase inventory, or otherwise finance day-to-day activities. Further, improving your credit score, with a bad credit business loan, can make accessing capital in the future even easier.

Additionally, accessing capital through a bad credit business loan can be a quick and easy process – unlike a traditional loan which can take weeks or months of paperwork and approvals to see funding in your account. 

Finally, a bad credit business loan helps you more effectively manage your cash flow situation, which can lead to better growth and performance, and more flexibility in running your business.

How Do I Apply for a Bad Credit Business Loan With Bizfly Funding?

With BizFly Funding, you can apply for a bad credit business loan, through our website, in a very simple, quick, and easy process. Pre-approval can be received in as little as 30 minutes, and it will not affect your credit score.

Step 1: Apply
  • Fill out our One Page Application.
  • Submit the last 3 months of your Business Bank Statements.
  • It is free and will not affect your credit score.
  • You must be in business for a minimum of 6 months - No-Startups.
Step 2: Get Approved

As soon as this is submitted completely, it will be submitted to our underwriters and our Funding Specialist will contact you with a few offers to choose from. 

Get an approval within hours after your application is processed.

Step 3: Get Funded
  • Choose one of the offers provided by the Funding Specialist and provide a few extra documents to complete your submissions.
  • Once the underwriters have received the full submissions package – the funds will hit your business bank account within 1-2 business days.
  • In some cases, same day funding can be applied.

Bad Credit Business Loans Recap

Bad credit business loans can be one of the only forms of financing available to firms that have bad credit or limited credit history. They offer a number of advantages to businesses in these circumstances, and are generally seen as a highly positive and valuable financial instrument.

  • Access to capital to pay off other debts, pay expenses, expand, and finance your business
  • Ability to use the bad credit business loan to improve your credit score and make future borrowing even more accessible
  • Quick and easy to qualify for and receive funds from, unlike traditional loans
  • Ability to qualify even with a fairly low credit score or limited credit history

If you have additional questions about a bad credit business loan from BizFly Funding, need more information, or help with your loan application, our support team is more than happy to assist you!

Simple Online Application Process

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Bad Credit Business Loan FAQ’S

If the co-signer is a partner it will help when determining your rate, but small business lenders do not accept co-signers that have no ownership in the business.

No. Lenders can only base approval decisions off of business bank statements.

No. You can utilize the funding however it is needed.

Yes, but your time in business and the financial health of the company must be very strong.

There are always individual considerations for every application so speak with your loan advisor about business loan consolidation.

A minimum of two months is required for bad credit business funding with Bizfly Funding.

No. BizFly Funding takes pride in the privacy offered to clients and never sells your information.

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