Small Business Loans

Given today’s volatile fiscal situations, more small business owners have embarked on taking loans in order to revive their rapidly disintegrating businesses. And yes, these small business loans: 101 have seen these businesses register stellar performances in a very short span. While that is happening, some other small businesses have continued to drown in a storm of financial constraints due to their lack of information on the types of small business loans available for them. I have, however, delved into the issue and compiled a list of at least seven types of small business loans available in the market.

1. Bank loans.

In case you qualify for it, this offers the lowest interest rates. However, there is that aspect of an administrative bottleneck when it comes to whoever can access bank loans. These are also the hardest option to secure financing, unless you have adequate collateral or an incredible credit history you may not even qualify.

2. SBA loans for small businesses.

This is yet another option available for small businesses in need of a loan. With an interest rate of like 7%, I would say that it is quite affordable. However, just like bank loans, they have numerous restrictions and mountains of paperwork to be done. However, if you qualify for it, you could take a long-term loan of up to 7 years.  Here is a video on how you qualify for an SBA loan.

3. Working capital loans.

This is yet another option available for small businesses looking for quick loans. However, the rates vary depending on various factors. Depending on the stability of your business, the lenders vary their interest rates to suite the risks they have to bear for choosing to finance your business. However, it is a quick option.

4. Start-up business loans.

If you are starting a business and have the assets as well as an excellent credit, this is an option you could use. Start-up business loans are, however, not the easiest to obtain considering the fact that you actually do not have a business which can be used for assessment purposes.

5. Merchant cash advances.

As a last option, just in case you run out of options, you can take up merchant cash advances to revive your business. However, these advances have extremely high-interest rates which make them quite unpopular.

6. Equipment leaseback.

You could also use your assets to revive your finances. This is called equipment leaseback where you sell the equipment while still using them.

In a jiffy, if your business is stuck between a rock and a hard place, worry not. All you need to do is make use of any of these options and take your business back on track.

How to Get a Business Loan with Bad Credit

To let you secure a business loan, majority of lenders need you to prove your capability of repaying it by providing information like equity investment, business management experience, collateral and, of course, your credit history. When you have a bad credit, but still need financial assistance to start your business, still you can achieve your dreams. There are loan providers that are willing to provide the necessary funds even if you have a bad credit, and no collateral. Read on how to get a business loan with bad credit.


This is a type of a small loan which is normally less than $50,000. This type of loan may be extended to an enterprise by a non-profit organization or an agency like Small Business Administration. Basically these loans have a social motivation, and are meant to provide a helping hand to small businesses. The lenders are more lenient concerning the borrower’s credit score.

Take Advantage of Your Revenues

When your enterprise is generating revenues, and you’re making bank deposits, make use of the cash flow to go for a loan. The provider is going to look at your deposits to make a decision on the amount to lend you, even when you have a bad credit. Normally, this is around 10% of the amount which you deposit yearly to the business account. This kind of loan may be available quite fast since it is easy to access. But the interest rates usually tend to be higher when compared to bank loan. Furthermore, its term also does not run very long.

Tap Into Credit Card Sales

To raise cash, when you have regular credit card sales, then you could tap into this. The lender is going to advance you cash in exchange for some portion of future credit card sales. It is known as “merchant cash advance”. But you should be careful on the interest rate the lender offers when you go this route, since there are different rates every lender charges.

Find a Cosigner

You also may look for a business partner willing to cosign for you a business loan. This business partner, of course, should be someone with good credit standing. It is going to make the loan provider to be more confident concerning getting the loan repaid, and you’re likely to get the loan on more favorable conditions that you’d get on bad credit standing. You’ll likely to offer your cosigner some stake in your enterprise.

Bottom Line

Many people are having bad credit because of various reasons. This has negatively impacted on their ability to secure business loans. And with several businesspersons looking to grow their entrepreneurship, they might be looking for alternatives apart from the traditional bank loan. The above just some of the ways you can get a business loan with a bad credit.

Good luck!