BAD CREDIT SOLUTIONS:
 
Customize Your Loan for Your Credit Score
 
According to some stats, fewer than one-third of businesses looking for funding through a traditional banking method were actually approved. Fortunately, that’s far from being your only option.
 
Depending on your needs and goals, you can find financing options through several different types of lenders. If you have bad credit, though, your business loan options might be limited to fintech lenders.
 
1. Traditional Banking
It’s unlikely, but there’s a chance you’ll still receive a loan from the bank with a low FICO score.
 
However, be sure not to let your bank application hold up your search for financing. If you’re planning to use cash to pursue a new opportunity, then chances are your opportunity may pass by the time you’re approved.
 
Be sure to keep this time frame top of mind on your search for financing.
 
2. Invoice Financing
If your company deals with customer invoices, and you have several that are currently unpaid, you can use them to apply for invoice financing.
 
This can help you get the cash flow you need to get your business moving in a timely manner. In essence, you’re using unpaid invoices to take on new customers.
 
Again, your time-sensitive opportunity can’t wait for bank approval.
 
3. Alternative Lending
Most online lenders will give you an opportunity, even if your credit is a bit of an eyesore. And, as with anything else, the higher your credit score, the better the terms of the loan will be.
 
Alternative lenders are a great option if you’ve been turned away by the bank, or if you need cash in a hurry to seize a moment.
 
4. Credit Cards/Line of Credit
If you’re just starting out, applying for a company credit card or a business line of credit is often a smart way to get the cash you need for one-time purchases.
 
Pay on an as-needed basis, but remember: don’t borrow more than what you need. Overdrawing a loan and having to pay back interest on money you didn’t even use can derail even the most detailed business plans.
 
5. Crowdfunding
Need some extra cash and have a great rapport with your customers? Then using a grass-roots movement to ask for contributions might be a fantastic option to raise money.
 
As always, help from family and friends is a bonus. If you’re going to pursue this option though, make sure to be open and honest about your needs and your goals. Social media can be a wonderful tool in this endeavor.
 
Be sure to remember that this might give you some extra cash, but it may not be enough. If you need a substantial amount of cash to accomplish lofty goals, then this probably isn’t the best option.