How You Can Obtain A Business Loan With Bad Credit

It’s no secret that every Small Business has its ups and downs, especially in an uncertain global economy. If a slow quarter crushed your credit score, it could affect your ability to get a business loan when you need additional capital to keep operations progressing.

Lenders use credit reports as a tool for determining a borrower’s risk level before lending out any cash. If your credit report reveals a history of missed payments or a high amount of existing debt, you will have trouble getting a business loan at a traditional bank or credit union. These factors, among others, might cause your application — and hopes of an injection of cash into your business — to be denied.

However, all is not lost. Obtaining a business loan when you have less-than-stellar credit might seem difficult, but there are ways to get the funds you need. Some financial institutions, such as online and alternative lenders, look at more than your credit score. They’ll take into account how long you’ve been in business, your annual revenue, the state of the current market, and your industry risk profile. Even if you have bad credit, you could still qualify for a loan.

Preparing to Apply

Before putting pen to paper to apply for a business loan, check your credit score for errors. If you find any…