You Can Get a Small Business Loan – Even With Poor Credit
Capify have over 14 years’ experience of providing short-term funding for small businesses that traditional mainstream lenders regularly turn down.
We look at different application criteria than a bank and will consider all credit profiles.
Our lending is quick and straightforward, and you could receive your funds in as little as 24 hours.
To see if your business is eligible for a loan of £5,000 – £500,000, just tell us about yourself and your business, and we can give you a quick decision with no impact on your credit score.
- What is a bad credit small business loan?
- Getting a small business loan with poor credit
- Types of loans available if you have poor or bad credit
- What can poor credit small business loans be used for?
- What are the advantages of a poor credit business loan?
- What are the disadvantages of poor credit business loan?
- Will I need to put up security for a poor credit small business loan?
What is a bad credit small business loan?
Running a business can be a pricey venture. All businesses need cash, and particularly in the early days, you need to spend money to make money. Poor credit can be a real problem. Even an issue as seemingly small as one missed payment due to extenuating circumstances can cause some lenders to turn away, even from long-established businesses.
However, there are still providers that will help out with small business loans with poor credit customers, by moving past traditional lending methods.
What is a bad credit small business loan? Put simply, it’s a loan which allows small business owners to get the funding they need, without their credit history being a huge obstacle. Poor credit business loan providers look beyond the basics to help you borrow the amounts you really need.
Getting a small business loan with poor credit
There are many reasons small business owners or those wanting to start a business might have bad credit. There may be an old CCJ that’s been paid but still not expired. Or it could simply be that too much was borrowed over a short space of time. A credit history is just that: History. We look at your current cash flow as well as what’s happened in the past, so we’re using what’s happening right now to determine the risk in lending money. Businesses with bad credit often believe that they can only apply for traditional loans. Thankfully, there are plenty of alternative options available allowing businesses to get the funding they need.
Types of loans available if you have poor or bad credit
Our business loans take into account your current business performance. We look at how you’re doing day to day, which is how you run your business- in the present. We also consider how many card payments your business is taking daily, and use this to consider how much we might lend you, possibly as a merchant cash advance. Merchant Cash Advances (MCAs) move away from traditional loans completely, avoiding the expected repercussions of bad business credit.
What can poor credit small business loans be used for?
What can you use a small business loan for? Anything you need. Businesses often need funding for expansion or investing in new projects. You might need funding to get specific inventory items in that you know are going to sell well. You might need specialist equipment to take your business to the next level. Or it could just be a case of keeping cash flow moving for essentials like utilities, paying employees or rent for business premises.
What are the advantages of a poor credit business loan?
There are many advantages to the alternative methods of lending. A bad credit small business loan means you can stop being held up by your credit history. It means you can get the funding you need to make your business dreams a reality. It means you can stop having multiple credit searches done with traditional loan providers- which can damage your credit rating further. Also, some alternative methods of lending have shorter terms on, which can be beneficial for new businesses not in a position to make long term commitments. It can also be easier and quicker to access the funds once you have successfully applied for a bad credit business loan. Many applications are fully online, keeping it safe and simple.
What are the disadvantages of poor credit business loan?
One of the questions small businesses have is, are there any disadvantages to a bad credit business loan? Well, they can end up costing more overall. As with any loan, it’s always crucial to ensure you can afford any repayments, and that it’s cost-effective in the long run.
Will I need to put up security for a poor credit small business loan?
Another common concern is whether business owners will have to put up security for a poor credit business loan. This isn’t necessarily the case, though. Sole traders, in particular, can be held personally liable for missed payments rather than having to put up collateral that would be reclaimed by the lender. Higher rates of lending also reduce the need to provide collateral. For limited companies, there’s also the option to offer a personal guarantee in certain circumstances. Speak to a specialist to find out which options will work best for you and your business needs.
Find out how much you could raise
Enter your details into our business loan eligibility calculator and see how much you could potentially borrow.
Sourcing business finance needn’t be a frustrating process. Take a look and see if we can give your business the boost it needs.
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