Bad Credit Startup Business Loan – Is There Such a Thing?

Bad Credit Startup Business Loan – Is There Such a Thing?

Bad credit startup business loanYou might be wondering if there is such a thing as a bad credit startup business loan. The short answer is yes there is. The longer answer is…it’s a bit more complicated than that.


The truth is you can obtain a business loan if you have bad credit, and you can even obtain a loan for a startup, but the interest rates are going to be higher.


You’re also going to have to look outside of traditional lenders to find the money you need.


Before You Start Looking for Bad Credit Startup Business Loan

Before you jump into applying for a loan at a company that gives loans to people with bad credit, make sure your credit is bad enough you need to go this route. What is an acceptable credit score and what isn’t varies depending on which bank or lender you talk to, but there are a few guidelines.


For most traditional lending sources you will need a credit score of 600 or 650 at the very least. If your score is higher than this, then you should go ahead and talk to your bank to help you determine whether or not you could be approved.


If your score is at this level, or lower, then you won’t have any chances of getting a bad credit startup business loan at a regular bank. Instead, you should read on for other lending options.


Lending Options for a Bad Credit Startup Business Loan

There are a couple of lenders you can check out if you find yourself in the situation of needing a business loan and your credit is a little dodgy. One of the best for startup loans is Lendio.


Lendio actually gives you access to 75 lenders that deal with business owners and startups. They will lend up to $750,000. What is also nice about this company is that they do a soft pull when they check your credit score. That means it doesn’t ding your credit rating.


They do have some requirements, of course, that include:


  • Credit score of 680 or higher
  • Two years of personal tax returns
  • You should have experience in the type of business you plan to start


You can be approved very quickly and even have your money within twenty-four hours. If you apply and are approved, Lendo will assign you a funding manager, so even though you have access to 75 lenders, you only have to deal with one person.


This saves you a great deal of time and frustration. In addition, this loan will be a revolving line of credit and be accessible for up to twenty-five years. That means once you are approved, you will have access to this money whenever you need it. Of course, you will need to make your payments on time.


If you are looking for a bad credit startup business loan, you should check out Lendio today.


Additional Option for a Startup Loan for Less Than Perfect Credit

If your credit score is under 680, there are other options.


Able Lending allows you to invite your friends and family as well as strangers to invest in your startup through them. What is great about Able Lending is that once you have investors, they will loan you the lion’s share of the money as their risk has been reduced.


Once the loan is in place, you simply make one monthly payment to them, and then they send a payment to each of your investors.


The second advantage is that your investors don’t actually own a part of your business. That means you can retain control over your business and have the money to get it off the ground. There is also no awkward conversations with loved ones about how you will pay them back. It is a win-win situation.


What you need to know about Able Lending:


  • Interest rates begin at 8%
  • The loan term is from 1 to 5 years
  • Loan amounts range from $25K to $1 Million dollars
  • They are a collective lender


No matter what your credit score or issues you’ve had in the past, you can find money for your startup if you look hard enough. These two lenders are a great place to start.



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