Is It Possible To Get A Business Loan With Bad Credit?

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On my business app, people often ask me whether they can get a business loan with bad credit. This is a tricky question because there are many things that should be taken into consideration. And one of those things should be the very question of whether this person should really be taking out a loan if they already have bad credit history. Let’s examine all the issues involved.

Should I Get A Business Loan

First of all, getting a business loan to start your business is considered very risky even if you have good credit history. Most businesses fail and almost no entrepreneur thinks that they will fail. So the risk is not immediately recognized by the entrepreneurs until the business is dead, but there is still a very big loan that needs to be paid off. So I encourage you to think twice before trying to get a business loan to start your business. Here is an article dealing with the question of whether it is a good idea to get a business loan to start a business.

Business Loan With Bad Credit

If you have bad credit, in most cases that refers to your personal credit history, and not the credit history/rating of the business. So the loan that you will need to get is a personal loan. That means you will need to pay it back.  Be careful of secured loans. Secured loans means that the bank or whoever the lender is, can take away your possessions if you are not able to pay back the loan.

Growing Your Business

One thing that can help you get a business loan despite having bad credit is when a business is able to grow on its own. Then the health of the business will become a big factor in helping convince the lenders to lend you the money. Here is a video tutorial on how to start and grow your business.

Places Where You Can Get A Business Loan

Most people think of banks when they think of getting a business loan. But for businesses which have not started, or are just starting, banks are notoriously difficult to get a loan from. To get a business loan, many people have to go to micro-lenders such as Lendio, Kiva.org, or Prosper.  It is still difficult to get a loan from these companies if you have bad credit, but it is sometimes possible. And, of course, if you are based in United States, take a look at sba.org to see whether they may be able to help you in any way.

Other Fundraising Sources

Loans are not the only way to go. You can raise money by getting grants, donations via crowdfunding, investments from investors, or doing a number of creative things. Here is a video tutorial with some fundraising ideas.

And here is a tutorial for how to get organized and write your own fundraising plan. And here is a video tutorial for how to write a fundraising proposal.

And here is how to create your fundraising plan in a video tutorial:

And here is a tutorial on how to get a business loan.

Further Fundraising Resources

For more business-starting resources, please take a look at our business planning mobile apps. Here is the iOS business plan app and here is the Android business plan app.  Additionally, here is the iOS fundraising app. And here is the Android fundraising app.And here is an article where I give the argument that our Android apps are the best business apps on Android.

And please check out and subscribe to my YouTube channel where we cover many marketing topics.

Author: Alex Genadinik

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