Droves of small business owners find that they have to close their doors every month because they cannot afford to run the business any longer, and their credit is too low to qualify for a traditional small business loan.
As a former business advisor, I have learned how to get a small business loan with bad credit. If you are a small business owner who is facing this kind of issue, this article might save your business.
Industry Investing Companies
Many large industries have companies that will invest in smaller companies in the market to keep the market strong. In the past, I have aligned small businesses up with large corporations that would help small businesses get loans with bad credit. While these corporations are few and far between, they can sometimes be the lifeline that small businesses need.
I have seen cases in the past where suppliers were willing to help out owners who need to get a small business loan with bad credit. In these cases, the small business was one of the supplier’s larger accounts and it made more sense to help with getting a loan or giving a loan than to have the client close the doors.
There are many private investors that are always looking for small businesses that they can expand, or just help out. Some of these investors are willing to give loans to local businesses that have made an impact on the community. Some investors make it easy enough to find them by placing ads on Craigslist.
Many credit unions have programs set up for owners that need small business loans but cannot qualify due to their bad credit for a traditional small business loan. A simple call to a local credit union will help you to find out how to get a small business loan with bad credit.
There are more and more non-profit organizations that are popping up across the country called micro-lending institutions, whose sole purpose is to help owners with bad credit get small business loans. In most cases, the most that a small business owner can qualify for is $50,000.
The Small Business Association
The Small Business Association was set up to help nurture small businesses in the United States. The SBA has multiple programs set up for owners to get a small business loan with bad credit. A visit to their website might be the first step that your company needs.
Many small business owners are leery of the SBA due to the fact that it is a government agency. These small business owners need to remember that the SBA was set up to strengthen small businesses. They understand that companies sometimes fall on hard times and would rather help out than to see another owner have to close the doors.