As you are about to find out, between the various creditors that we are about to discuss, there are plenty of them out there willing to deal with people that have subpar credit. Millions of loans have been given out to people with bad credit.
There are many financing institutions that facilitate people who wish to get a business loan but have bad credit and are often overlooked by banks.
As small business loans are one of the most used types of loans, lenders try to adapt their supply to meet demand and help bad credit entrepreneurs prosper.
Let’s get right to it and find out where you can get a business loan and funding for your startup in spite of your credit score.
Best Startup Business Loans for People With Bad Credit
Gust
Gust is one of the leading global online platforms that provide capital to various businesses and companies from different industries, and it also helps with their creation and operations. In addition, it has a Software-as-a-Service (SaaS) online platform that offers to fund entrepreneurs who are starting or are running their companies.
Founded in New York, Gust has a considerable investor base of 192 countries, and it houses some of the leading angel investors and venture capitalists. Its primary function is to match your startup with potential investors, and it also provides you with the complete framework, including documentation, benchmarks, requirements, and business growth tools. This way, you have a better chance of getting recognized and picked by investors.
In just a few simple steps, you can connect with Gust and tell them everything about your startup. In addition, they provide you with funding recommendations, tips on various concerns such as the cost of LLC in New York if that will be your startup’s home, and ways to make your startup more ‘investor-ready.’ You can start by signing up without paying any money, and you also get a free trial before. This way, you can be satisfied before paying the annual fee of $300 per user, which is nothing compared to the benefits and features that Gust provides.
With Gust, you can join more than 850,000 successful startups in securing an investment – all this without the need for assessing your personal credit scores.
AngelList
AngelList is a US-based online platform that brings startups and angel investors to a common platform. Since 2010, it has helped numerous startups overcome the hurdles associated with startup business loans, which get stalled due to a credit check of the founders. In addition, the platform allows startups to showcase their products so that investors can explore them and decide if they want to invest or not.
AngelList is more of a connection medium for startup founders to register and pitch their businesses. It features a wide range of accredited angel investors who can seek more details on a project or product that they feel is viable. In addition, there are various kinds of rolling funds, where different renowned investors and lenders offer funding businesses, teams, products, and tools that they see potential in.
Apart from securing a loan, AngelList also has a remote job marketplace where you can find the right talent for your startup. It is another credible platform where there is no mention or need for your scores or a credit check, so you can expect to start your business much more conveniently than traditional lenders.
OnDeck
On Deck Capital or OnDeck, is one of the most popular global business lenders. Founded in the US, it has offices in various states and offers startups every stage to put their company forward to secure funding. The company itself was funded by many of the top investment firms and angel investors back in 2006. Today, it is a successful public company with operations expanded into Canada and Australia as well.
OnDeck is known for providing startups with an intuitive and user-friendly platform to showcase their business idea or products in front of a pool of accredited investors. It also helps you secure a startup business loan much faster than traditional banks that can take a couple of months.
The best part about availing OnDeck’s services is that you don’t have to worry about getting rejected based on a credit check. Instead, it uses personal credit reports and posts them with business credit bureaus, which helps you build solid business credit by paying your dues on time. This way, you can receive further investment much faster than the initial waiting time and build a good reputation among investors and venture capitalists.
Startup founders who have already secured financing with OnDeck can also experience loyalty benefits. For instance, they can receive a waiver on the current loan’s remaining interest payments when applying for a new business loan.
Commercial Loan Direct
Commercial Loan Direct is a US-based commercial lender that offers loans and funding options and works as a lender for other US-based financial institutions and banks. It provides startups with a wide range of loan options to choose from. Not only can you secure funding much quicker than from traditional sources, but you can also find loans of all sizes, as well as market-beating interest rates that make it easier for you to pay back.
CLD’s online services are excellent and highly trusted by its clients, including people with low personal credit scores and couldn’t get approved for a business loan to start in the right direction.
Moreover, it also has a rapid and responsive team that proactively gets in touch with you within 1-2 business days. They also explain each and every procedure in detail and also walk you through different loan programs.
Therefore, if you are in a hurry or have lost a lot of time with different lenders and financial institutions, you can apply for a loan with Commercial Loan Direct. With no upfront fees or hidden charges, you can also save a lot of money.
Go Kapital
If you require a quick startup business loan and are being rejected through a credit check by banks, check out Go Kapital. Founded in 2013, the Florida-based business lender specializes in providing small business loans and real estate financing for entrepreneurs who wish to start their business from the ground up or expand their business to a larger scale. It provides you with hundreds of loan options that come with flexible terms and low-interest rates.
With Go Kapital, you can receive a wide range of features, such as revenue-based loans, lines of credit, unsecured business loans, and much more. As a result, you can easily find a financing plan that suits you and allows you to grow your business without having to worry about delays or any holdup in the loan securing process.
So, whether you are looking for $10,000 to set up your company or $1,000,000 to take it to the next level, Go Kapital has got you covered. You can get your loan approved within 24 hours, thus accelerating your business growth timeline. Their support and assistance are also available to guide you through the entire process and make everything easy to understand.
FAQs
Is There a Limit to the Loan Amount That I Can Receive?
Typically, all financing companies and investment platforms have a minimum and maximum amount of how much you can receive. You can find more about these limits by checking out the website of the business loan providers you are considering applying to.
How Can I Determine How Much Money I Need?
Most startup owners think they need a lot of money to grow their business or expand their operations. Usually, they are unable to manage their finances, and not only do they lose their business, but they also end up in a lot of debt. Therefore, you need to determine how much money you need by thinking about your return from investing this money in your business.
Can I Get a Business Loan With a Credit Score of 500?
If you have been in business for a few months and have a credit score of 500 or above, you have a higher chance of securing funding for your business. On the other hand, you can approach the options mentioned above if you have a lower score.
How Do I Qualify for a Small Business Loan?
A Small Business Administration or SBA loan is typically given to small companies or startups operating for profit, conducting their business in the US, and fulfilling the SBA criteria for small businesses.
How Much Money Can I Get Approved as a Business Loan?
Generally, you can get anywhere between $10,000 and $5 million as a business loan. Obviously, larger amounts will come under far greater scrutiny and it depends on what type of company you have or which stage your startup is in currently, i.e., starting out, running for a few months, expanding, etc. Then, the loan is divided into different categories, such as short and long term loans, SBA loans, microloans, and many others.
Therefore, how much money you get approved depends on which lender you go to and which plan you choose.
Conclusion
This brings us to the end of our article on the best startup loans for people with bad credit. Make sure to approach a credible business loan platform or lender by checking out their reviews and doing your due diligence to fully understand their policies and know what you are getting into. We recommend having your lawyer or accountant review any loan terms and conditions before you sign them.
Moreover, it is also essential to know how much money you want, so you don’t get tempted by the idea of getting more money than you even need.
