Getting business financing when you have a low credit score can be difficult, but it’s not impossible. If you’re looking to get a loan or other form of financing for your small business, there are options available that don’t require perfect credit or even good credit. Some lenders specialize in working with borrowers who have less-than-stellar scores and may offer more flexible terms than traditional lenders.

1. Secured Business Loans

A secured business loan is one where you use an asset such as a piece of property or equipment as collateral for the loan. These types of loans tend to have lower interest rates, making them more attractive than unsecured loans. However, if you default on the loan, the lender could seize your asset, so it’s important to make sure you can afford the payments before taking out a secured loan.

2. Merchant Cash Advances

A merchant cash advance (MCA) is a type of financing that typically requires no credit check and uses your future sales as collateral for the loan. With an MCA, you receive a lump sum up front and then repay the loan by making daily or weekly payments as a percentage of your sales. MCAs are a great option for businesses that have consistent sales volume, but be aware that MCAs tend to have higher interest rates than traditional loans.

3. Online Lenders

There are several online lenders that specialize in providing financing for small businesses with bad credit. These lenders often have less stringent requirements than traditional banks, making them a good option for those with lower credit scores. However, it’s important to compare interest rates and terms before taking out a loan as some online providers may charge higher fees than others.

4. Boost Your Credit Score

Lastly, if you want to increase your chances of getting approved for financing, it’s important to boost your credit score. The best way to do this is by making on-time payments and keeping revolving debt balances low. Additionally, you can contact the three major credit bureaus and dispute any inaccurate information that may be on your report, as this can help increase your score.

By following the advice above, you can increase your chances of getting business financing even if you have a low credit score. With some planning and research, it is possible to secure the capital you need to start or expand your small business. Contact Hudson and Hudson Lending today to get the financing your business needs. We offer solutions to businesses with all types of credit scores.