Is it Possible to Get Small Business Loans with Bad Credit?
Most lending agencies will shrink from the idea of giving a small business loan to a person or business that has bad credit. The best way to get a small business loan for those that have bad credit is to separate their business credit from personal credit while working to correct the bad credit problems.
Step 1
Get a tax ID number and establish a legal entity, such as a corporation or LLC.
Step 2
Establish business credit through securing business loans or business credit cards.
Step 3
Be sure to pay back all bills and loans on time to establish good credit.
Step 4
Establish a good cash flow that demonstrates there is enough money coming in to cover payments for a small business loan.
Establishing good business credit will not happen quickly, but can go a long way to separate a good viable credit history that a lender will be willing to invest in versus a bad personal credit history that may drag down your chance to get your business off the ground and growing.
