How to Get Business Loans with Bad Credit

With larger amounts, longer terms lower interest rates, NBC’s business loans for bad credit provide a helping hand to those who wish to grow their businesses when others don’t. Getting any kind of help from banks is hard enough – even with immaculate business credit. For those with less-than-impressive business credit, getting the financing you need to grow and improve your business can seem virtually impossible.

Fortunately, the field of alternative lending has given innovative companies like National Business Capital the ability to offer a wide variety of business loans that specialize in helping those with less-than-impressive credit scores. Read on to learn everything you need to know about how to get small business loans for those with less-than-average business credit.

Do NOT Apply for a Business Loan If:

  • Interest Rates are Too High: Don’t ever settle for a business loan with interest rates that don’t perfectly match the needs of your business.
  • Term Length Isn’t What You Wanted: Ensure you’re ability to repay borrowed capital with a term length and repayment schedule that best matches your business model.
  • Loan Amount Isn’t Large Enough: How much do you need to accomplish your specific business goal? Getting the amount of capital needed with poor business credit can be incredibly difficult through the channels. However, there are many financing options that offer large amounts regardless of credit score. Jump to the list of business loans for bad credit below for some examples.
  • Qualification Standards are Too Strict: Don’t let a lender make you think that just because you have bad credit, that you can’t be approved for a business loan with terms that don’t wind up hurting more than helping your business in the long run.

2 Main Types of Business Loans for Bad Credit Borrowers

  1. Small Business Loans: Would you prefer a secured or unsecured business loan? Are you comfortable with leveraging collateral, or would you rather leave your personal and business assets out of the equation? Do you plan on paying off your loan with fixed terms, or would you rather a more flexible repayment schedule? Whatever your preferences may be, NBC can find the perfect small business loans for bad credit borrowers.

    When your business needs funding immediately to pay for an emergency expense, or take advantage of an exciting opportunity such as managing payroll, leasing or upgrading equipment, expanding a business, or bridging gaps in cash-flow, many borrowers with bad credit turn to small business for fast and easy funding. With looser requirements, flexible terms, and faster funding than loans provided by traditional lenders, small business loans make it easy to secure financing options with accommodating terms that help businesses from virtually every industry accomplish any specific goal, regardless of blemishes on credit scores and financial histories.
  2. Business Line of Credit: If you don’t need immediate funding, but recognize that a moment in the future could arise where you need cash quickly, then a business line of credit is the loan for you. This kind of business loan for bad credit is exactly what those who require capital to prepare for unexpected future expenses. Need to hire extra staff to take on an unprecedented amount of customers? Cool. You need extra materials to take advantage of a sudden opportunity? Not a problem.

    With lightning-fast access to funds, and incredibly flexible repayment terms, a business line of credit may be just what your business needs to grow. One of the most convenient and accommodating features of a business credit line is that you only pay for what you use. National Business Capital will work with you to determine a line of credit amount, and then you can draw upon that line of credit as you need it.

4 Types of Small Business Loans

While most business owners with bad credit will want a typical business loan or a business line of credit, NBC does offer specialized loans for unique situations that may help them achieve their goals with greater ease and convenience. Here are just a few specialized small business loans for bad credit that business owners with less-than-great credit can benefit from:

  • Equipment Financing & Leasing: Lease, upgrade, or purchase equipment for any industry, and use the equipment itself as collateral.
  • Accounts Receivable Financing: Turn I.O.Us into cash, and get what you need to help fulfill your invoices – without alerting your customers.
  • Purchase Order Financing: Sell your purchase order in exchange for a cash advance.
  • SBA Loans: Loans that are guaranteed by the Small Business Administration federal agency. While SBA loans are notoriously hard to get from traditional lenders, and can take enormous amounts of time to receive funds, NBC’s expedited and simplified processing can allow clients access to funding in days, instead of months.

Qualifications for Applicants with Bad Credit

NBC focuses on the bigger picture when evaluating the businesses of their clients as a whole, and establishes trust based on the promise of their business model. Instead of following rigid and unreasonable standards, National Business Capital prides itself in its ability to provide business loans for bad credit that accommodate to the individual needs of their clients.

In fact, many of the most successful business owners with bad credit came to NBC for help after getting rejected multiple times by banks. Today, these businesses are among the largest contributors to NBC’s 90% approval rate.

The NBC Difference

Traditional lenders have been and will always be an inconvenient and all-around awful means of securing financing for business owners with poor credit. Banks have only ever had one thing on their mind when approving their clients for funding: the size of their credit scores.

According to banks, business owners with bad credit haven’t proved themselves trustworthy enough to borrow any capital. Strange and arbitrary qualification standards regarding business credit score, financial history, and even the terms of their loans are already set far in advance, and refuse to accommodate to any business owners that do not meet those standards.

Does something about this sound horribly wrong to you? That’s because there is. Alternative lenders like NBC know that businesses are never defined only by their credit score. This is especially true for businesses that have not been in business for long, as well as those that have bad credit due to seasonal drops in revenue. There are many contributing factors that play into a business’ credit score, and more times than not, businesses with bad credit are not themselves entirely responsible for its score in the first place.

Next Steps

If you’re looking for funding and your low credit score has affected your approvals elsewhere, contact the Business Financing Advisors at NBC for some good news! Start by filling out this 1-page, 1-minute application, or contact a financing advisor, available 24/7 at (877) 482-3008 to answer any questions, and get you approved for the loan of your choice in as little as 24 hours or less!


About the Author, David Surrusco
David Surrusco is the Head Content Writer at National Business Capital, is best known for his work in creating what has become the best business financing blog known to mankind: The NBC Advisor.