Business Loans for Small Business – Soft Pull and Fast Funding

October 5, 2023 By Marco Carbajo

Business Loans for Small Business

Is your business in need of a loan or line of credit?

In today’s post we’ll discuss business loans for small business owners and how to apply. First, let’s discuss how a business loan or line of credit can benefit your company.

You can use a loan or line of credit for many costs, such as buying new equipment or expanding your business. Two major industries are construction and trucking. Other popular industries are Manufacturing, Healthcare, Restaurants, Retail, Auto Repair, etc.

For construction funds usage, funds can be used for inventory, material cost for new jobs, labor/ employee cost for taking on more jobs, Delayed AR (payouts from old jobs), etc.

In the trucking and transportation industry, funds are generally used for new equipment, fixing current equipment, fuel/lodging expenses and working capital / cash flow.

Business Term Loans Overview

$10k – $2 Million
Up to 5-year terms
No prepayment penalties
Avg gross monthly rev $25k+
FICO® Score 600+ (soft pull)
2 Years+ Time in Business

Click to continue …

Are Bad Credit Business Loans Worth It?

November 5, 2009 By Marco Carbajo

Times are tough for small business owners who have seen their good credit fall to the wayside from using their personal credit cards to finance purchases, equipment, and even payments to suppliers or vendors to keep their businesses going during these tough economic times.

While bad credit business loans are a viable option they do come with a price that most are not willing to pay. It can also be a difficult task but it is definitely possible despite the current economic times.

Before you decide this is an option you’re willing to pursue I encourage you to do your homework and don’t jump into anything without carefully weighing all your options on the table.

Below I have listed several ways to obtain a business loan if you have bad credit but be prepared to pay higher fees and higher interest rates with some of them.

Sub-prime lenders

While there is sub-prime lending programs designed for business owners with bad credit, these specific programs charge anywhere from 12% to 18% interest, and even higher. This is not an option I would recommend because you end up weakening your finances in the long term.

Transfer of Ownership

One of the ways you can solve a bad credit problem is through a transfer of ownership. In many cases two partners in a corporation own 50% each and one partner may have excellent credit while the other may have bad credit. In these cases both will have to be included in the credit check for a business loan with the bank and the one partner with bad credit will ruin the chances of obtaining a loan for the business.
If this is the case than an option would be to transfer 100% of the business to the partner with the strong personal credit profile. The transfer of ownership is done privately and is simple to complete and can easily be filed in your corporate record keeping book. Make sure you consult with your CPA and attorney if this is something you would like to do. Remember, the ownership can be transferred right back once you have finished applying for a business loan with your bank.

Secured Business Loan

A sure way to obtain a loan with bad credit is to post sufficient collateral. This type of loan is known as a secured business loan and is typically asset-based, which means hard assets are used like equipment, commercial real estate, receivables and in some cases inventory.

Co-Signer

This happens to be a very common solution for bad credit business loans. A creditworthy co-signer will act as a guarantor for the business loan and they can be a business or trading partner, or investor, or subsidiary company with a strong credit score.

As you can see a business loan with bad personal credit is possible even during these challenging times. As you work on repairing your personal credit these options can be a temporary solution for your business to obtain the funding it needs. While bad credit business loans are costly you have to ultimately decide if it’s a price your willing to pay.

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpeg

Marco Carbajo is a business credit specialist, author, speaker, and founder of http://www.startbusinesscredit.com . Want to learn more about how to build business credit and obtain unlimited financing for your business? Claim Marco’s popular FREE business credit seminar ($597 Value), available by simply submitting your email below=>

Bad Credit Business Loan – Top 5 Solutions

July 2, 2009 By Marco Carbajo

During tough economic times many business owners are faced dealing with tough personal credit challenges. As a result they have to resort to applying for bad credit business loans just to keep their businesses afloat regardless of the interest rate being charged.

Hard money lenders have no problem charging outrageous fees and interest rates for taking on the risk but there are alternatives to bad credit business loans.

Here are my Top 5 Solutions to Bad Credit Business Loans

Accounts Receivable Factoring

Factoring is a form of finance used to finance commercial, consumer, and government accounts receivable. Typically, businesses factor their accounts receivable to improve and accelerate their cash flow. Businesses that factor their invoices (accounts receivable) sell their invoices to a factoring company, usually for anywhere between 95 to 99 cents on the dollar.

Business Cash Advance

An alternative to a traditional bad credit business loan, you can receive advance cash based off your future credit card sales (Visa, MasterCard, American Express, Discover, and Debit Cards). There are no personal guarantees or collateral attached to the business advance. This allows you to have the working capital you need within 3 business days or less. There are no restrictions on how to use the money allowing you to grow your business hassle free.

Business Asset Liquidation

While liquidation usually means you’re closing your business forever this can be a viable strategy to raise capital without actually closing your business. You may have equipment that you no longer use or other assets that can be sold off that can generate substantial capital for your business.

Personal Credit Restoration

It’s not a shame to have bad credit because everyone at one time goes through challenges but it is a shame to keep it. Start repairing your bad credit immediately by either fixing it yourself or enrolling in a solid, reputable, and legal credit repair service.

Increase Credit Scores

In addition to credit restoration another strategy for solving a bad credit challenge is in improving your debt to credit utilization. You accomplish this by establishing higher credit limits with lower balances typically below 30%. When you have larger credit limits on personal and business credit reports new lenders that you apply to will tend to extend even larger credit lines.

Bad credit business loans do exist but before you decide to commit be sure to consider these options. If you do choose to apply or you are already in a high interest rate loan because of bad credit be sure to start restoring your personal credit. Once you improve your credit you can apply for a loan and obtain a much better rate. This will allow you to pay off the high interest rate loan and saving you thousands in interest.

Remember – Improve your business, your life, your relationships, your finances and your health. When you do the whole world improves. ~ Mark Victor Hansen

Instead of jeopardizing your personal credit and assets every time your company requires financing, you can use the business’ credit rating to secure the financing you need with even more favorable terms and lower interest rates.

Start your business credit today!

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpeg Marco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club. Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.