Contrary to popular belief, small business loans for bad credit do exist. The first step in obtaining them is knowing where to go to apply. While most traditional lenders do not offer small business loans for bad credit, there are lenders that do. Those lenders are called “microlenders.” Microlenders are typically non-traditional lenders that are focused on financing small businesses in their local community. There are microlenders in all 50 states that focus on providing small business loans for bad credit. The Small Business Administration (SBA) provides a list of all the microlenders they work with in each to state help fund small businesses. This list is not comprehensive. Therefore it would be wise to do a Google search for microlenders in your state as well.
How to Get Approved for Small Business Loans for Bad Credit
Getting approved for small business loans for bad credit can be simple. It’s all about understanding what microlenders will accept. For example, at QT Business Solutions we work with a number of microlenders to help our clients get funded. Our largest microlending source will accept applicants that can meet their minimum credit criteria. We educate our clients on the minimum credit criteria required for approval with the microlender. By educating them on what requirements they need to get approved, they can better prepare themselves to meet that criterion.
We Can Get Small Business Loans for Bad Credit
At QT Business Solutions, we specialize in small business loans for bad credit. If you own a small business and you have less than perfect credit, you may be able to qualify for up to $50,000 (or more) in funding. You will qualify if you meet the following credit criteria—
- Must be employed for at least 6 months or in business for 6 months.
- Must have a minimum 575 personal credit score.
- Must have collateral such as personal or business assets. (Your future receivables can serve as collateral, otherwise, titled objects such as automobiles, real estate (commercial, residential, vacant land), equipment, etc).
- Must have a legally registered business with EIN/TAX ID number. (We can help you get this setup if needed).
- Bankruptcies must be discharged for at least one year.
- Cannot be 60 days late on IRS debt, student loans or child support.
- No more than 30 days late on any bills, loans, credit cards, or any other payment.
- No foreclosures in the last 24 months.
- No 30 day late rent or mortgage payments in the last year.
- Not have any mortgage-rate adjustments due during the term of the loan.
- Borrower can’t have more than 3 mortgages in their name.
- Borrower can’t have charge-offs over $500 on their personal credit report if the business is a startup.
- Borrower can’t have charge-offs over $3,000 on their personal credit report if the business is established.
If you meet the minimum criteria to get small business loans for bad credit, please click here to request an appointment with one of our helpful representatives.