How to Get a Small Business Loan With Bad Credit
The fact remains that it’s harder for smaller businesses—even those with stellar credit ratings—to get traditional bank loans than it is for larger businesses. Over 63% of business owners attempting to find funding say they most often targeted banks. The success among these respondents of actually getting a small business loan was a low 27%, reports SBA.
Unfortunately, bad credit—which is defined by FICO as a score of 300 to 629—currently plagues a large percentage of small business owners, as a result of the financial crisis several years back. One way entrepreneurs can overcome the stigma of poor credit is to apply for revenue-based loans, which are based on regular monthly bank deposits, according to Marco Carbajo, founder of the Business Credit Insider’s Circle.