Bad Credit? Where To Find Small-Business Loans 2019

Typically, most entrepreneurs aspiring to start up or boost their business will opt for traditional banks for funding. With a good credit score, there is a viable chance you will get the loan but with a poor one, it is almost impossible. These banks will scrutinize your credit history and anyone below 600 score is regarded as a high-risk borrower. Such scores can be attributed to late debt payment and huge debt collections thus affecting your credit report and repelling credit institutions. In the past, being in such a situation would have left you with few to none options. However, today, all is not doom as there are still proven ways you can find that business loan even with a negative lending history. In this regard, we have come up with 6 tested ways to find a business loan in 2019 if you have bad credit.

Predatory Payday And Car-Title Loans

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1. Peer to peer financing

P2P platforms are marketplaces where borrowers meet lenders. In this case, you join a peer to peer website and make a loan application. The online platforms will review your profile authenticity and give lenders a go-ahead to decide whether to award you the loan or not. Loan processing will be faster than traditional banks although the interest rates will be much higher as expected in any alternative lending platform. The two most popular P2P companies you might have a look at are: Funding Circle and Lending Club.

2. Seek Loan from Relatives and Friends

You might have overlooked this option, but did you know that over 40% of business owners have received business loans from family or friends at some point?  Unlike banks, they will not dwell on your credit score but the will either trust you or believe in your business concept. In this regard, it is important to approach them with a written loan agreement with repayment clauses. It is also imperative to have a clear mind on the compromises you are willing to take, like having them invest in your business rather than handing you the loan.

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