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First Capital Business Finance

Bad Credit Business Loans

First Capital

Invest in Your Own Success

We firmly believe that a less-than-perfect credit history shouldn’t hinder your entrepreneurial dreams. Our Bad Credit Business Loans are designed to empower businesses like yours with the financial support needed to thrive and grow, regardless of credit challenges.

At First Capital Business Finance, we offer bad credit business loans that can give you access to working capital that will help you grow your business. We know that a bad credit score can make other lenders turn you away, but we’ll work to find the right business loan for you even if you have bad credit, and get you the best deal. We have programs that DO NOT require a minimum credit score. That’s right, even if your credit score is under 500 we have available loan programs for you!

Bad Credit Business Loans

How Your Credit Affects Your Ability To Get a Bad Credit Business Loan

Banks use your credit rating as an indicator of your ability to repay a loan. The higher your score, and the better your payment history shows, the more likely you are to make on-time payments with your future loan. A lower score can be a signal that you are more likely to skip payments, fall behind, or default on a loan. Here, we understand that both you and your business are more than a credit score, though. Not only is your personal credit history a consideration, but most finance companies will look at your business credit history. This is why we offer equipment financing and business loans for bad credit. If your credit is a little challenging, our programs will consider alternative ways to underwrite your credit package. Here is a list of the FICO credit score ranges:
  • Exceptional (800 – 850)
  • Very good (740 – 799)
  • Good (670 – 739)
  • Fair (580 – 669)
  • Poor (300 – 579)
Bad credit often refers to a FICO score of 300 to 629. A lower FICO score is one of the most common reasons as to why a traditional lender would reject small-business loan financing.

What We Take Into Consideration

  • Average gross monthly income for the business
  • Length of time in business
  • Industry type

 Do You Qualify For a Bad Credit Business Loan?

  • 4 Months Minimum Time in Business
  • 500 Minimum Credit Score (New No Minimum Score Program!)
  • Minimum of $8,000 Monthly Gross Revenue
  • Available in All 50 States
  • No Assets Required – No Real Estate Required
  • Loan Amounts from $5,000  to $2 Million
  • Business Does Not Need to Process Credit Cards
  • Terms Ranging from 3 Months to 24 Months

Equipment Financing Bad Credit

We have financing specialists on hand to help you find a financing arrangement for all types of business equipment, including commercial trucks and construction, office or heavy manufacturing equipment. We can even finance used equipment. We have financing and business loans for startups and existing businesses with both good and bad credit. Our terms range from 12 to 72 months, allowing you to customize financing to your business situation.

Why You Should Consider a Bad Credit Business Loan

If you’re not deterred by the associated risks and you’ve chosen to proceed with obtaining a loan despite less-than-ideal credit, let’s delve into the reasons why you should contemplate higher-cost financing.

A low credit score can pose challenges when it comes to borrowing money. As a small business proprietor, there are instances when you require swift access to funds, whether it’s for covering rent or employee salaries. Additionally, there are situations where you might desire to upgrade your storefront or embark on expansion plans, but find yourself lacking the necessary cash reserves.

Arguably the most crucial motive for securing funding for your business is the necessity to sustain its operations. Nonetheless, there are compelling reasons to seek additional working capital, even when it entails greater expenses.

Equipment Financing Available!

  • Start-up Businesses OK! (No minimum time in business)
  • Good & Bad Credit Programs Available
  • Terms Ranging from 12 Months to 72 Months
  • All Equipment Related to your Business can be Financed!
  • Financing from $5,000 to $5,000,000

No-Credit-Check Business Loans: A Valuable Financing Choice

No-credit-check business loans offer a practical solution for businesses seeking financing without the scrutiny of a credit check.

Perhaps your credit score falls on the lower side, making you uncertain about loan eligibility or other financing options.

In most cases, several business loan categories exist that bypass the need for credit checks. These include invoice factoring, payment processor loans, and merchant cash advances. We can help compare various choices for credit-free business loans and gain insights on selecting the most suitable funding solution to meet your specific requirements.

Conversely, you might boast an excellent credit score and wish to avoid additional inquiries that could impact your credit report. Regardless of your motive, numerous small business loans are available without the need for a credit check, including some offering same-day approval.

Types of Bad Credit Business Loans We Offer

Our financing programs are designed to serve the needs of businesses of all sizes in a wide range of industries.

Start-Up Business Loans for Small Businesses

If you are just getting started, we will work with you to secure the right financing for all of your startup needs. We can offer new businesses advances up to $2,000,000 on their outstanding accounts receivable. AR advances are available with no credit check. The application process is simple and quick, so you’ll have the money you need to get up and running.

Unsecured Working Capital Business Loans

We offer both lines of credit and loans that can give you access to much-needed working capital, too. If you are having a cash flow crunch, we can help. Our application process is simple and quick, with same- or next-day approvals possible. With our capital loan program, funding can happen in as little as five days so that you can meet immediate business needs. Our financial consultants have extensive knowledge about underwriting criteria, and they will work to guide you through the application process.

Minimum Qualifications for a Business Loans

First Capital Business Finance has repayment terms ranging from three to 24 months. Business Loan amounts are available from $5,000 to $2 million, so you can get the capital you need even if your credit isn’t where it should be. We don’t require you to have a credit card processing agreement or to put real estate up as collateral. We offer generous and flexible business loans for bad credit with just these minimum qualifications:

  • A credit score of 500 or higher
  • Minimum of $8,000 Monthly Gross Revenue
  • An established business for at least 6 to 12 months
Bad Credit Business Loans

Why Choose Our Bad Credit Business Loans?

  • Inclusive Approach: We understand that credit challenges can arise for various reasons. Our focus is on your business’s potential and aspirations, not just your credit score.
  • Tailored Solutions: We work closely with you to customize loan terms that align with your unique circumstances and financial goals.
  • Fast and Efficient: Our streamlined application process ensures that you receive a prompt response, minimizing waiting times and allowing you to seize opportunities quickly.
  • Transparent Terms: You’ll have a clear understanding of the loan terms, interest rates, and repayment schedules from the outset, empowering you to make informed decisions.

Rationalizing Business Expansion

In certain scenarios, opting for a bad credit business loan can be a prudent choice, particularly within industries grappling with hyperinflation. Take, for instance, sectors like construction, trucking, and hospitality, where profit margins are notably high or on the rise. In such cases, the decision to secure financing at slightly elevated rates becomes more justifiable.

Consider this: If a $10,000 investment promises a $45,000 return, what value would you place on that initial $10,000? To put it differently, if your construction project demands a $10,000 piece of equipment to complete a job that guarantees a $45,000 profit, would you consider financing it if you lacked the cash upfront? Most often, the answer would lean toward a resounding “yes.” The lingering question is the precise worth of that capital.

Now, this isn’t to suggest that business owners should dismiss the importance of financing costs entirely—far from it. They should, indeed, scrutinize these costs with diligence. However, in dire situations, this assessment should be conducted devoid of emotional influence and grounded in a judicious analysis of profit and loss.

As we mentioned earlier, it’s important to acknowledge that bad credit business loans typically carry higher financing expenses. Lenders assume greater risk and, consequently, attach a premium to the capital extended to businesses. When entrepreneurs perceive capital as commodities they procure, they’re better poised to make sound business choices.

The crux here is that many business proprietors will encounter temporarily heightened financing costs. If your credit history is less than stellar, brace yourself for potential “sticker shock” in terms of financing expenses. However, it’s imperative not to allow this initial surprise to escalate into emotional distress. Conduct your due diligence, explore various options, and determine whether the somewhat higher cost of financing aligns with your overall business objectives.

A Partner in Your Success

At First Capital Business Finance, we don’t just provide loans; we foster partnerships for success. Our dedicated team is committed to supporting your business journey:

  • Personalized Guidance: Our financial experts take the time to understand your needs and help you navigate the loan application process smoothly.
  • Strategic Insights: Beyond financing, we offer insights and advice to help you make strategic decisions that contribute to your business’s growth.
  • Rebuilding Trust: Our Bad Credit Business Loans provide an opportunity to rebuild your credit history through responsible financial management.

 

Ready to Take the Next Step?

Don’t let past credit challenges define your business’s future. Embrace the possibilities with our Bad Credit Business Loans. Contact us today to discuss your business goals, explore financing options, and embark on a journey toward growth and success.

Empower your business to thrive, no matter the credit history. Choose First Capital Business Finance for Bad Credit Business Loans that turn challenges into triumphs.

First Capital

Our Services

Commercial & Semi Truck Financing

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Not Traditional Financing for Your Commercial Truck is Available
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Heavy Equipment Financing

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We Can Finance Your Construction Equipment With Bad Credit
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Business Loans

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We Offer 24 Hour Approval on Working Capital Loans
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It’s challenging to be a small business owner in 2020. The COVID-19 pandemic forced institutional and economic change beyond personal health mandates. The spread of the illness required governments to shut down borders and businesses, requiring self-quarantine and isolation. While the drastic and necessary measures curbed the increasing numbers of infected, the disease has severely compromised many small businesses.

Acquire Cash Flow Assistance To Stay Current on Bills

The most significant problem for business owners during the current pandemic is the loss of cash flows. As governments called for shutdowns, companies were essentially stripped of cash. The loss of money leads to debt, which can result in more severe problems, like closure.

Applying and securing a business loan through us can help resolve your current cash flow issues, allowing you to stay current on bills and avoid using other payment methods, like high-interest credit cards. While credit cards may seem like a viable option for the short term, if the debt is carried over long periods, you pay much more than the initial bill.

Reasons To Consider a Business Loan During the Current Pandemic

The current health crisis is forcing every industry and enterprise to reconsider strategies and operations. While small businesses have taken the largest financial hit, even large, well-established organizations are reporting significant losses over the last quarter, with further losses expected on year-end reports. Adapting to the new normal is a must, but, to evolve or change with the times, companies must find the capital necessary to breathe and survive.

Business loans offer a saving grace in these uncertain times, especially as reopening begins. Small businesses have no doubt felt the struggle more than most, with closures in the hundreds of thousands. A loan from us can help you stay afloat until your revenue streams reignite, and our financing can help in several ways.

Consolidate Credit Card Debt

If you were forced to use credit cards to handle bills because of limited income, then using a business loan to consolidate your existing debt may be a good option. Credit cards are notorious for having high-interest rates, and when your debt is spread across several cards, you are dealing with compiling interest. While many credit card issuers offer fee waivers during the pandemic slowdown, using a single loan to pay down or pay off credit card or other debt can remove the interest redundancies, allowing you to pay far less. Contact one of our representatives to discover how a business loan can help.

Purchase Reopening Essentials

If you survived mandated closure without building debt, you’d most likely need help purchasing equipment and supplies for reopening. With limited, if any, cash flows or income over the last several months, many business owners are turning to personal accounts to fund their reopening, which is risky.

Reopening in the age of COVID-19 means adhering to local sanitation and social distancing guidelines. You will inevitably need to alter your operations for habitual cleaning regimens and reduced capacities. A loan can help you purchase necessary cleaning equipment, signage, and other essentials

Applying for a Business Loan From First Capital Business Finance

First Capital Business Finance is a trusted alternative lender, and since 2009, we have helped businesses like yours meet their cash flow needs. Serving small and middle-market enterprises, we provide industry-leading support through highly trained representatives, and we offer several loans and financing options for all your business needs.

While conventional bank loans require invasive and lengthy approval processes, our company aims to secure your funding as quickly as possible. We understand that during the current economic slowdown and health crisis, time is of the essence. When applying for a loan with one of our experienced representatives, you can receive approval in as little as two days with funding in five.

While you have no doubt read comments like the above from any alternative lenders, we take pride in our transparency and reputation. Don’t just take our word for our work. You can review our client testimonials to learn how our efforts helped several business owners like you handle their cash flow demands.

 

Things To Consider When Applying

While the application process for any of our loans is straightforward, it is necessary to consider your business needs and select the option that best suits your current demand. Every loan type will come with specifics regarding repayment, term limits, and interest rates. You will also need to understand any restrictions that may be tied to the spending of the loan funds. Beyond researching the types of loans available, it is crucial to understand the eligibility requirements of each financing option.

While researching available loans may seem overwhelming, do not fret. Our experienced representatives are here to help you find the best solution for your business needs. They will walk you through the typical eligibility requirements and specifications of our loan programs.

 

Age of the business

Reduced risk is often tied to longevity, which is why traditional bank loans tend only to deal with well-established businesses. Our institution, alternatively, caters to the often underserved market of new and small business owners. First Capital Business Finance offers loan programs aimed at businesses one year or younger.

Serving such young businesses is a potential risk for us. Still, we trust that industries are better served with a variety of competition. Nothing makes us happier than helping the underserved entrepreneurs find affordable financing options to grow and thrive through times like these.

 

Annual revenue and profitability

One of the primary contributors to loan approval for small businesses, regardless of credit score, is annual revenue and profitability. We cannot approve a loan if there is nothing to secure our interest. Your company’s profitability and revenue help to determine our risk and the likelihood of repayment. Even for borrowers with bad credit, you can still typically count on a loan offer of between 8% and 15% of your business’s annual gross revenue. That threshold provides enough security for most alternative lenders, including us.

Profitability during the current crisis and economic slowdown is not likely for many businesses, but the great news is that it does not count you out for loan approval. While demonstrating some profitability is always a good indicator of a successful business, most lenders understand the struggles of the current marketplace. Even without a pandemic, profitability only plays a partial role in loan approval, with the majority of lenders preferring annual revenue measures.

 

Cash flow

While current profitability may not be a significant concern among lenders at the moment, most will want to study your cash flows. Again, the current pandemic will contribute to the weight lenders place on this data. Still, the ability to manage cash flow is a strong indicator of the reliability of the applicant.

Cash flows, after all, demonstrate the viability of a business and its ability to meet current financial obligations. While leeway is expected amidst the current economic climate, historical data will still serve as a valuable insight to lenders.

 

Credit history

While small business owners understand the credit history of the business is investigated before loan approval, many are shocked that their personal credit history may be called into question as well. The primary indicator of overall risk to a lender is the credit score, and without a complete financial picture, it is nearly impossible to approve financing.

Why Personal Credit History Matters

A credit score is often broken down into the five Cs: character, capital, capacity, conditions, and collateral. In essence, the credit score determines your reliability as a borrower by weighing your overall history.

While it may seem unfair to review personal credit history to secure a business loan, it’s necessary to consider the age of the business. A relatively young company will not have a suitable history to determine creditworthiness, especially when asking for a substantial loan.

Keep in mind that a low or bad credit score does not rule your application out, especially when working with alternative lenders like us. While you may have a hard time securing a conventional loan, we are here to service borrowers that may not fit the mold or scrutiny of traditional banks.

Conventional Lender Versus Alternative Lenders 

Conventional lenders, like credit unions and banks, require significant documentation and have stringent eligibility requirements and policies regarding loan applicants and approval. These institutions are not designed with the startup or small business in mind. Smaller enterprises often require quick turnarounds and may not have the necessary financial history needed for approval with traditional lenders.

Working with an alternative lender, like us, means less documentation, quick access to funds, fewer restrictions, and flexible terms for all credit types. By offering tailored solutions for your loan needs, we can provide various lending options, including businesses and business owners with low or bad credit.

Types of Bad Credit Loans

Too many business owners assume that bad credit loans come with a range of negative caveats that will leave them worse off than before, but that is not always accurate. Indeed, predatory lenders exist even for businesses, but when working with a reputable lender, like us, you can rest assured that you’ll be better off than before.

We want to help our clients through the current COVID-19 crises, ensuring that all approved applicants walk away from the table with loan terms that are favorable and realistic. No business owner should have to risk everything to keep their dream alive. Let our skilled representatives walk you through several of the bad credit loan options available.

 

Short-term loans

Among the most popular bad or low credit loans is the short-term loan. These loans offer a lump sum amount for a fixed period, typically less than a year. The payments are made according to a pre-determined payment schedule and include both the principal and interest. These loans are often based on historical financial data, but lenders may need to make exceptions based on the current crisis.

 

Merchant cash advance

If your credit score is a concern for you, but you have consistent credit or debit card sales, you should consider a merchant cash advance. These advances offer a lump-sum against a percentage of future merchant account transactions.

While the approval process for these loans is straightforward, many businesses may not find the interest rates favorable. Therefore, before selecting this loan option, consider the costs over the life of the loan.

 

Short-term business line of credit

If you are not sure how much you need from a loan, or you are expecting future costs, then you may want to apply for a business line of credit. Lines of credit are similar to credit cards in that the business is approved for a set amount, and they can borrow against that amount, only paying interest on the portion they borrow. Therefore, the short-term business line of credit is useful in times of uncertainty.

 

Working capital loans

As you begin reopening your locations, you will likely come across cash flow needs, but as the health crisis has hindered your revenue, you may need working capital. Unlike other loan types, working capital loans cannot be used for long-term assets. Instead, these loans help finance day-to-day operations, like inventory, wages, and other routine expenses. We currently offer loans of up to $500,000 to qualifying businesses, allowing you to re-establish operations after the pandemic slowdown.

 

Collateralized loans

Collateralized or secured business loans require invoices, equipment, or other assets to secure financing. While not always needed, when you have bad credit, providing collateral reduces the risk of the lender. However, any time collateral is used, you risk losing the asset if you cannot pay back the loan, making this loan form too risky for many business owners. Talk with one of our representatives to discuss your loan options.

Loan Approval Benchmarks

Traditional or conventional lenders will have a hard time approving a loan for a business or business owner with a score of less than 650 to 700, especially if that business is less than a year old. However, as we are an alternative lender, you can find loan programs even as a new enterprise or an owner with a credit rating below 550.

The reason we can offer loan approval without adequate credit is that we allow for alternative loan options, like factoring. Therefore, while the standard benchmarks for loan approval may be too great at a bank or credit union, we can find a solution.

Loan Approved

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What Our Customers Say

Improving Approval Odds With First Capital Business Finance

As an alternative lender, we have experience working with small and medium-sized businesses with all types of credit histories. We understand the struggle of operational stability, especially as the economy ebbs with the current health concerns. However, even before the pandemic and government shutdowns, we helped businesses like yours secure the loans they needed to survive and thrive. We were able to help these businesses, even those with less than perfect credit, by offering unique and flexible programs.

 

Accounts receivable financing

Accounts receivable or invoice financing is a loan secured with unpaid invoices. Some lenders, like us, are willing to work with qualifying clients, advancing a percentage of existing invoices and allowing for a more straightforward approval process. However, keep in mind that these advances, a form of factoring, still accrue interest over the loan term.

Bad Credit Business Loans

Equipment financing

Like invoice financing, equipment financing is a way of securing the loan with collateral and reducing the lender’s risk. The unique aspect of an equipment loan is that the equipment can act as the collateral. While risky because a default on the loan means repossession of the equipment, your personal assets are protected.

Collateral

Aside from using invoices or new equipment, you can improve your odds of approval by offering some other form of collateral. Unfortunately, using collateral, while beneficial to the lender because of reduced risk, is riskier for the borrower. Personal assets used as collateral sit in a sort of limbo of ownership until the loan is repaid.

Co-signer

While not a common practice for business loans, some lenders may approve the use of a co-signer. The co-signer is an individual with a favorable credit rating and can take over payments on the loan if the primary is unable.

Loan Selection Considerations

Taking on a business loan, especially with the current level of economic uncertainty, is risky. Still, for many small and struggling businesses, a loan is the only way to return to some form of operational normalcy after the mandatory closures and newly imposed restrictions. However, while you may need a loan to carry you through the next several months through the various phases of reopening, it is crucial that you not rush into a decision or commitment without first making several considerations.

 

Business Loan Fees and Costs

As there are various loan types, there are different fees and costs associated with each loan program. You will want to talk with one of our representatives to determine any expenses beyond the principal. While we do our best to remain transparent, our loans are customized to suit your business needs, and as with any personalized service, the terms will be specific to your business.

 

Loan Terms and Limits

The loan term is the time until full repayment, including principal and interest. We specialize in both short-term and mid-term loans. A short-term option offers terms between one and three years, whereas a mid-term repayment loan provides between two and five years for repayment.

Beyond the term, you will want to look at the limits of the loan. Most programs offer a maximum loan amount. If the loan limit does not provide enough funds, you may need to look for alternative or creative financing options. However, it is often better to find ways to reduce the required amount by cutting costs.

 

Interest Rates

Interest rates are an undeniable certainty of loans, but the rate is often dependent on the overall risk to the lender. Applying for a large sum over a short-term with poor credit will likely require a higher rate of interest because the risk to the lender is more significant. However, several factors play into the rate, and one of our representatives will be happy to go over how our rates are calculated.

Before choosing a loan, make sure that you understand the level of interest you will pay. Also, consider how repayment may affect the amount of interest owed. For instance, early repayment can lower your financial obligation, but that depends on the specific loan.

 

Current Obligations

Before agreeing or applying for a business loan, consider your current financial obligations. Are you already carrying a significant amount of debt, or do you already struggle to pay your business obligations, even when operating as normal? If so, taking on more financial commitments could be a mistake. One of our representatives can help you decide if a business loan is right for you.

While the COVID-19 pandemic and economic slowdown have undoubtedly affected businesses, the world and country are beginning to adapt. Your business does not need to struggle. Apply for a First Capital Business Finance loan to make reopening a success.

 

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