Brevard County Bankruptcy Attorney

How to Get a Business Loan if You Have Bad Credit

Are you in need of funding to start or expand a new business? Are you unable to secure a loan from a big bank because you have bad credit? Although you might have to pay more in the end, there are still lending options available if you have bad credit:

Microloan

If you have low capital, you can try to take out a small, short-term loan known as a “microloan.” These loans are usually less than $50,000; which makes it easier for business owners to get approved. You can get a microloan from the U.S. Small Business Administration if it will be used for working capital or to buy inventory for your business. You can’t use this type of loan to buy real estate or refinance existing debt.

Merchant Cash Advance

If you need cash for your business quickly, you should consider getting a merchant cash advance. Under this arrangement, a lender loans you money based on your anticipated sales. You can repay the loan from your future credit and debit card sales, or, you can choose to repay the lender with periodic transfers from your bank account. If you decide to get a merchant cash advance, beware of high-interest rates, especially APRs in the triple digits.

Peer-to-Peer Lending

With peer-to-peer lending, multiple online investors contribute funds to a single loan. Although the loan is financed by multiple investors, you’ll only have just one loan and one monthly payment. The application process for peer-to-peer lending is much faster than getting a loan from a bank because the investors review your profile themselves.

Do you have more questions about securing a loan if you are in debt? Then call our legal team at The Buchalter Law Group to request your case consultation with one of our dedicated attorneys. We are here to serve you!

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