Greenday Online: How to Get a Business Loan Despite a Poor Credit Score

People with Bad Credit Can Still Get Small Business Loans

Running a small business requires an enormous amount of bravery. The fact that small enterprises account for 99.9 percent of all U.S. firms shows how important entrepreneurs are to the American ideal. Clarify is committed to providing small business owners with the working capital they require in order to grow their enterprises.

We don’t think a borrower’s credit score should be the primary determining factor in whether or not they are approved for a loan. We understand that your credit rating does not define you or your organization.

Therefore, before granting you low APR credit, we consider all aspects of your financial status and company strategy. Clarify Capital works with more than 75 lenders, making it possible to get a loan in as little as 24 to 48 hours.

Bad credit small business loans

Even if you have a low credit score, you can still be successful in business. Since every financial position is unique, we’ll work with you to come up with a financing option.

Getting a personal loan when you have a low credit history can be tough.

There are short-term business loans accessible for those that need them.

Term loans are those with a repayment period of six months to two years. An upfront payment that is repaid over a pre-determined length of time. Short-term loans are an excellent alternative to traditional lenders like banks or credit unions for young companies.

APRs (annual percentage rates) for Clarify’s short-term loans start at just 7% without any collateral. The term loans also have low credit score criteria. To qualify for pre-approval, firms must have been in operation for six months and be able to demonstrate a monthly revenue of at least $10,000 or $120,000 for the entire year.

Accounts held with commercial banks

A line of credit and a business credit card are very similar. Only the amount you borrowed plus interest on the amount you borrowed are due when you take out a loan. Lines of credit are superior to credit cards since they have lower interest rates and no prepayment penalties. It could help you improve your company’s credit rating in the long run.

Owners generally invest working capital, such as purchasing items or paying workers, in this manner. The ability to draw on a line of credit whenever you need it is perhaps the most valuable feature of having one.

Financing of Invoices (also known as invoice factoring)

Companies can acquire short-term capital in the form of invoices by using accounts receivable as collateral. If you have unpaid invoices, this is an excellent approach to raise cash. Because the invoices act as collateral, you don’t have to be concerned about your credit score.

Fourth, there is the possibility of obtaining equipment financing.

As with a car loan, you can get financing for new or reconditioned equipment. Regardless of your industry, an equipment loan can help you develop your business or replace outmoded assets.

Is a Business Loan for People with Bad Credit a Good Idea?

A company loan is a great option even if your credit is less than stellar. The goal of a business is to maximize the return on invested money. Then there are the personal development goals you’re working on. If you’re serious about making money and expanding your company, you should consider getting a loan.

When you have a low credit score, it isn’t usually because of bad financial habits. This is clear to Clarify. If you’re serious about running and growing your business, knowing your alternatives for financing is essential.

Low-Credit Loans for People

We don’t believe that bad credit ratings should stand in the way of your company’s growth. To suit their business needs, borrowers might put loans to a variety of different uses.

Things can be slow at times

During quiet times, you may experience a drop in sales. Invoice factoring or a short-term business loan might give working cash to offset a short-term change in sales.

COVID-19 symptomatic relief

It is clear to us that the difficulties experienced by small enterprises across the United States are well known. Because of the pandemic, Clarify can help you get the money you need to keep your business running.

Materials and Stocks

Many businesses rely on loans to keep up with demand and keep their operations running smoothly. Certain business owners might save money by purchasing in bulk.

Amounts Needed

For obvious reasons, you’ll require a few implements to complete the project. We provide working capital loans and equipment financing to help you buy new or refurbished equipment. You can even apply if you have a bad credit score with this loan kind.

Payroll Taxes

Payroll and tax expenses are a part of doing business for every company. The ability to pay your employees and the government on schedule is critical for any company that is experiencing financial difficulties.

Refinancing

Refinancing your present debt is possible if you have the correct loan terms. We can help you pay off your loans at any interest rate you like.

GreenDayOnline lending products are designed to meet the unique needs of borrowers. Contact us today to learn more about our direct lending products and how they can benefit you.

Jason Rathman

FINANCIAL EXPERT at GreenDayOnline

Jason writes about all financial topics such as loans, debt solutions, and bankruptcy. He is an expert when it comes to subjects like APR, loan fine print, debt collection laws within the United States. With his in-depth knowledge of all things financial, he is a great asset to Greendayonline.