Business loans and grants for bad credit -Small business loan with bad credit

Bad credit, defined by Moby as a score of 300 to 629, is a common reason why lenders refuse applications for small business loans. Borrowers with low credit scores are considered to be at higher risk of defaulting on a loan. Even so, even with bad credit, you have financing options.

Apply for a small business loan with bad credit

Ideal for new businesses: Professional credit cards and secure personal credit cards.

Ideal for business owners with a credit score of at least 500: Standbuy, Kingos and Quarterpond.

Ideal for business owners with a credit score of at least 600: SpareStrit and Yellowish.

Ideal for companies whose customer invoices are unpaid: Standbuy and Yellowish.

Summary of business loans with bad credit: Compare all your options.

ACFA official website offers bad credit business loans that are best for business owners. 

How do you get a business loan with bad credit?

How do you get a business loan with bad credit?

Alternative lenders offer options to borrowers with unequal credit histories. Most of these lenders require a minimum personal credit rating of 500 to 650. Some lenders require no minimum credit rating.

Other factors may be taken into account, including your annual income, the number of years of activity and whether you have had a recent bankruptcy.

Borrowers should consider the following before choosing a financing option:

  • A lower credit score can result in a higher interest rate on your loan.
  • If you have unpaid customer bills, you can get cash immediately through factoring or bill financing. Although lenders can always check your credit score, approval depends primarily on the value of your bills.
  • If you can wait and improve your personal credit, you may be able to claim more options at a better rate.

If you have less than one year of activity

If your business is less than a year old and generates little income, it will be difficult to find a loan, regardless of your credit. Here are the start-up financing options to help you grow your business.

Potential options include business credit cards, which generally borrow up to 50,000 euros. However, approval depends on your personal credit score and you will need a minimum credit score of 630 to qualify for most cards.

If you need to improve your credit score, consider first getting a secure personal credit card. These cards require a cash deposit when you open the account. However, use the card responsibly, you will improve your personal credit and recover your deposit.

If your personal credit score is 500 or more

If your personal credit score is 500 or more

Standbuy, Kingos and Quarterpond provide short-term cash for working capital.

The Standbuy line of credit is ideally suited to companies that need working capital up to € 100,000. No minimum credit rating is required, although you need a minimum annual income of $ 50,000 and three months of activity.

Kingos offers working capital loans of up to 250,000 euros. A minimum credit score of 560 is required to qualify. You will also need a minimum annual turnover of € 50,000 and one year of activity, as well as a platform for business verification or online payment.

  • Loan amount: € 2,000 to € 250,000.
  • AVR: 24% to 99%.
  • Loan duration: 6, 12 or 18 months.
  • Financing time: A few minutes to several days.
  • Read our review Kingos.

Before applying for a Kingos loan, check to see if you meet the minimum requirements.

  • 560 minimum personal credit score.
  • 1 year or more of activity.
  • € 50,000 + in annual revenues.
  • A business verification or online payment platform is required.

Credit line

  • Amount of the loan: 1000 € to 100 000 €
  • APR: 10.1% to 79.8%
  • Loan duration: 12 weeks
  • Financing Time: As fast as the next business day
  • Read our review Standbuy

Before applying for a Standbuy credit line, check to see if you have the minimum qualifications.

  • No minimum personal credit score
  • At least three months of activity
  • € 50,000 + in annual revenues

If you need higher loan amounts and high annual income, Quarterpond provides funding of up to € 250,000. The company requires a minimum credit rating of 550 and makes a progressive credit draw, so the app will not hurt your credit score.

  • Loan amount: € 5,000 to € 250,000.
  • AVR: 30% to 70%.
  • Loan duration: 6, 9, 12, 15 or 18 months.
  • Approval time: As fast as 24 hours.
  • Read our magazine Quarterpond.

Before applying for a Quarterpond loan, check to see if you meet the minimum requirements.

  • 550+ personal credit score.
  • 2 years and more activity.
  • € 200,000 + in annual revenues.
  • Average of at least 10 deposits generating monthly income.
  • € 2,000 + average daily balance of the account.

If your personal credit score is 600 or more

If your personal credit score is 600 or more

SpareStrit and Yellowish offer financing of up to € 250,000.

Yellowish offers a six and twelve month line of credit for short-term working capital. Qualifying for the 12-month option requires higher income and a longer period of activity thanks to the six-month line of credit.

SpareStrit offers a term loan and line of credit at a lower APR than Yellowish. The repayment term can be up to three years, compared to six or twelve months for Yellowish.

Term loan

  • Loan amount: € 2,000 to € 250,000.
  • APR: 8% to 39.99%.
  • Loan duration: 3 to 36 months.
  • Funding time: 0 to 5 days.
  • Read our review SpareStrit.

Before applying for a SpareStrit loan, check to see if you meet the lender’s minimum requirements.

  • 600+ personal credit score.
  • 1 year or more of activity.
  • € 75,000 + in annual revenues.
  • No bankruptcy in the last three years.
  • No tax lien or current collection (unless you have the proper documentation).

SpareStrit is currently not available to borrowers in North Dakota, South Dakota, Rhode Island, Montana and Nevada. If you operate a sole proprietorship, you can not use SpareStrit if you live in Delaware, Minnesota, Nebraska, New Jersey or New York (in April 2019).

Credit line

  • Loan amount: € 5,000 to € 250,000.
  • APR: 15% to 78%.
  • Loan duration: Reimbursed over 6 or 12 months.
  • Financing time: As fast as 24 hours.
  • Read our review Yellowish.

Before applying for a Yellowish line of credit, check to see if you have the minimum qualifications.Six-month line of credit:

    • 600+ personal credit score
    • 6 months or more of activity
    • € 100,000 + in annual revenues
    • Personal guarantee required

12-month line of credit:

  • 620+ personal credit score
  • At least two years of activity
  • € 450,000 + in annual revenues
  • Personal guarantee required
  • Not available in North Dakota, South Dakota and Vermont

If you have unpaid customer bills

If you have unpaid customer bills

Standbuy and Yellowish allow you to immediately convert your outstanding customer bills into cash. They usually evaluate the strength of your customers, for example if they pay on time, more than your personal credit.

If you need financing of up to € 100,000, consider Standbuy financing. You can get 100% of the value of the bills you expect your customers to pay, and then pay them back over a period of 12 or 24 weeks.

Yellowish is a good option for companies with larger bills of up to 5 million euros. You immediately receive 85% to 95% of the invoice amount and the rest when a customer pays you, less the fee.

Bill financing

  • Amount of the loan: 1000 € to 100 000 €.
  • APR: 10.1% to 68.7% for 12 weeks; 11.4% to 78.6% for 24 weeks.
  • Loan duration: Equal repayments over a period of 12 or 24 weeks.
  • Financing Time: As fast as the next business day.
  • Read our review Standbuy.

Before applying for Standbuy invoice financing, check to see if you meet the minimum requirements of the lender.

  • No minimum personal credit score required
  • No minimum annual income required
  • At least three months of billing history in online accounting or accounting software that can be linked to Standbuy, such as QuickBooks, FreshBooks, Xero, Harvest, Clio, InvoiceASAP, Sage One, Kashoo or Jobber.

Billing Invoice

  • Amount of the loan: 20,000 to 5 million euros.
  • APR: 15% to 68%.
  • Loan duration: 1 to 13 weeks.
  • Financing time: 1 to 3 days.
  • Read our review Yellowish.

Before applying for Yellowish invoice factoring, determine whether you meet the minimum requirements.

  • 530+ personal credit score
  • At least three months of activity
  • € 100,000 + in annual revenues

 

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