Most business loans are based primarily on credit or may be based on a combination of credit and collateral. This can be a problem for new businesses that don’t have established credit or collateral. Fortunately, there are financing alternatives available for those who don’t meet strict bank lending requirements. You may find bad credit business loans that practically anyone can qualify for. At First Capital Business Finance, we offer a variety of business loans for bad credit. Below are a few of the best loan options we recommend for businesses that don’t have the best credit scores.
Unsecured Business Loans
Unsecured business loans are easy to receive and don’t require you to have good credit or any collateral. This type of loan is also associated with a very fast processing time, so it’s a great option if you need money quickly. There are two basic types of unsecured business loans:
- Merchant Cash Advance: This is our traditional MCA program, and it does not require collateral or tax return documentation. It’s also commonly referred to as a business cash advance. We frequently extend this type of financing to retail stores, restaurants, and other businesses that accept credit cards as the primary payment form.
- ACH Merchant Cash Advance: Like a regular cash advance, an ACH MCA loan provides a wise alternative to traditional loans. You don’t need a merchant account to qualify, but you do need to have a business bank account. The amount you receive is based on your average deposits from month to month. You’ll need to show us your gross deposits as well as bank statements for the last 4 to 6 months as part of the application process.
Unsecured business loans are ideal for businesses with bad credit. This requires a minimum credit score of 500 to qualify for you bad credit business loans.
Loans Against Construction Equipment
Did you know you can take a loan against construction equipment you already own? Many businesses with bad credit choose this option. It’s also a great solution for those who need a start-up business loan. There are no limitations on how you can use the proceeds. You can put it toward payroll, more equipment, or anything else your business may need.
Even businesses that have gone through bankruptcy have a good chance of getting approved for a construction equipment loan. To qualify, you’ll need to show us at least two pieces of equipment that you can prove ownership over. Each piece of equipment must have a minimum wholesale value of at least $20,000. There are also limitations on the age of equipment that will qualify for this program.
Bad Credit Business Loans
Bad credit business loans are specifically designed to give businesses a second chance. It can be hard to bounce back financially after difficult economic times. That’s why it’s very important for companies to have access to business loans for bad credit. Here are the qualification requirements associated with these loans.
- A minimum monthly gross revenue of $8,000
- A minimum credit score of 500 required
- A business history of at least four months required
If you meet these qualifications, congratulations! You have a great chance of getting approved for one of our bad credit loans.
Bad Credit Equipment Financing
Every business needs equipment. In some cases, it may be difficult to get traditional loans for the equipment you require. That’s why we offer bad credit equipment financing to businesses that qualify. These types of bad credit business loans work well for all kinds of equipment, including manufacturing equipment, construction equipment, and office equipment. This is one of our most popular start-up business loans.
Here are some of the top benefits associated with our bad credit equipment financing program.
- Financing up to $5,000,000
- Start-up businesses can qualify
- Terms as long as 72 months
- Good and bad credit programs are available
We offer completely customizable solutions for your equipment financing needs. Through this program, you can fund practically any type of equipment.
Contact Us
Your business needs reliable working capital to thrive and continue upward growth. If you’re struggling to get by financially, there is no better time than now to find out if your business qualifies for bad credit business loans. To get started, contact First Capital Business Finance today.
Best Bad Credit Business Loans for 2020 | First Capital Business Finance
