Being approved for a loan these days is not easy. Financial institutions are still suffering from the economic downturn we faced less than a decade ago and are less willing than ever to extend loans to individuals – especially those who have bad credit or no credit at all. If you are looking for fast business loans with bad credit, the solutions below will help:
Business Cash Advances
Also known as a “merchant cash advance,” business cash advances are becoming the leading method for those needing fast business loans with bad credit to receive much-needed loans to scale their businesses. There are a number of benefits that come with this form of lending, including:
- This form of lending has no affect on your credit or collateral
- It’s faster than traditional loans
- There is a high approval rating
- The business cash advance provider only gets paid when you do
The application process is seamless and requires little paperwork. Most businesses can expect payment within the very same week they request the loan.
Home Equity Line of Credit
For those fortunate enough to not be affected by the housing bubble that struck the nation a few years back, you likely have equity in your property. This low-interest and tax-deductible line of credit can be used in any way that you wish. This means you can spend some on the business and the rest on debt repayment or a much-needed vacation.
The only problem with this form of credit is that it does put your property in jeopardy. If you do not think that you will be able to repay the debt or if your income is unreliable, you may want to consider another form of loan.
Find a Co-Signer
If you cannot be approved for a loan, find someone with good credit who is willing to help. This will need to be someone who is familiar with your financial hardship and knows that you are able to pay back the debt. Otherwise, you may struggle in finding someone willing to take a chance on you.
Family and Friends
Those in need of fast business loans with bad credit can appeal to friends and family members for a loan. Before doing so make sure that you have a detailed description of what the money will be used for, have a repayment plan ready, and have a written agreement on hand. Include information such as the interest rate, the agreed payment terms, the collateral at stake, and so on.
A loan from family and friends should be treated as a business transaction. But it should also be a last resort. Loans of this nature can have serious consequences on the relationships you have with these trusted individuals, so business owners should only embark on this type of loan when all other resources have been tried.
