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Bad Credit? 6 Ways to Still Get that Loan


When in business, the idea of expanding is a natural way to go. Growing your business means having an available fund. However, though it may be easy for some, others with bad credit may find it harder to get that loan.

There is no reason to fret, it will not be easy but there are still some effective steps to get that financing you need. With a bad personal credit at your back, you will need a good knowledge and plan to make that loan possible.

Know About Traditional Financers

The usual go-to financing for business owners are the traditional lenders. For most traditional lenders like banks, your credit score may matter the most because that is their metric for measuring their risk at allowing a loan especially if you are a new client.

Normally, these lenders would require a minimum of 650 or higher score before making a nod. That is why it is important to know where your chances are. Most traditional lenders have a limited list of who they will finance but you can always try. If you believe that you can make the payment you can always ask or offer up a collateral loan.

Some forms of collateral you can offer are your unpaid customer invoices, personal property or assets, cash or savings account, equipment financing, and Investment accounts.

Entering this kind of deal would mean making sure that your business will make an upward turn so that you will be able to pay the loan on time or else you take the risk of losing your collateral. Make sure that you will only make a collateral offer which you are comfortable with. So, if you think you are amenable with their requirements then take a look at loan options from them.

A Look at Microloan

Microloans from Credit Unions are considered as one of the traditional lenders as they are similar to banks. This is considered as an easier alternative for those with subpar or bad credits especially with a smaller amount of loan on the line like 50 thousand or less. With a lower amount , there are also lesser requirements for you. So, if you are good with starting with this range of amount then you can always go to them to immediately get your loan.

The Alternative Fintech Lender

More and more use the latest financial technology like the digital Fintech Lenders to streamline traditional lenders which go through meticulous processes. This type of lender seems to grow everyday, that makes it easier for those looking for easy access loans. They are transparent and even speed up your payment time.

With this you can easily check your loan and even get a personalized experience of your loan. The good thing about them is that most look at your business track record and financials more than your credit score.

Just be sure to check the lenders’ track records and background to know what you are getting into. Look for hidden deals or additional requirements. If you are able to get a good experience with them, make sure that you follow their rules to make sure that you get a good credit score and avail of higher financing in the future.

Having That Business Credit Card

A Business Credit Card is just like your normal credit card but it is in the name of your business rather than an individual, meaning securing a credit card in your company name. With this you must make purchases. This can help you build your credit rating as long as you pay on time and you stay on your credit limit. However, this could feature a range of charges and fees. As long as you are a good payer this can work for you.

Home Equity Option

If you own a house you can get the Home Equity Line of Credit which many call “betting the farm” because this is a very risky option – putting up your house as collateral to secure a bank loan. Most of the time banks no longer look at your credit score and even make a fast loan as long as you have you make out a mortgage.

Relatively Friendly Loan

Having Relatives or Family and Friends can also be an option. Maybe they are only waiting for you to ask. They may be willing to help or invest in your business. But if you want to make it a loan, then you must make sure that you pay them back. Do not think that you could slack on the payment, you may not want to wreck your relationship with them. One advantage however is that they may not put high internet or they may give you none at all. Better check this out to qualify for a loan.


Now that we’re in a pandemic, it’s expected that a lot of us can have difficulties when it comes to finance. Most of us have trouble getting loans and other options because of bad credit due to unforeseeable circumstances. However, don’t lose hope. The tips mentioned above are just several options for you even if your credit is bad.

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