Unsecured business loans and where to get the best ones if you have bad credit

An unsecured business loan will always be the preferred solution when a loan is needed. The alternative is the secured business loan which doesn’t sound as appealing. The latter requires you to put down collateral in order to get the loan you need. Collateral is represented by assets that can be taken away in the eventuality of you not being able to pay back on time.

Unsecured business loans are the best option, but even if you don’t have to put up collateral to be eligible for it, there are still some criteria that you need to meet. Your business has to be active for some time before you can get a business loan, and your credit, both business and personal, has to be in good shape. These, among other things, determine whether or not you have good chances of getting the loan you want.

Getting a business loan with bad credit

This is a lot more difficult that when you have a perfect credit score, but that doesn’t mean it’s impossible. It’s quite possible, but you just have to look for the right opportunities. Here are some of the best places where you can get an unsecured business loan even if you have bad credit.

Kabbage

Kabbage offers loans that go between $2000 and $150,000, and the APR goes between 24% and 99%. With Kabbage, you can get a business loan even if your personal credit is not doing that well. They ask for no minimum credit score but you need to have been in business for at least one year in order to qualify, and have annual revenue of over $50,000. Once you have all that sorted out, the only thing left that you need is a PayPal account, but a business checking account works fine too.

Fundbox

With Funbox you’re looking at a loan amount of $1000 that can go all the way up to $100,000. The APR goes between 15% and 59%, and they also cater to the needs of people with bad personal credit. You don’t need a minimum personal credit score here either, but you do need a minimum annual revenue of $25,000. The last criterion is that you need to have been in business for at least six month prior.

OnDeck

With OnDeck you’re looking at loans that go up to $100,000 and an APR that can go from 14% to 40%. Unlike the other two, here you need good personal credit and also you need to be good at managing your cash flow. You will need a personal credit score of at least 600, not to mention an annual revenue of at least $100,000. If you meet these conditions and have been in business for at least 1 year, without any personal bankruptcies in the past two years, you can get this loan.

LendingClub

At LendingClub you can get a loan of up to $100,000, from a minimum of $5,000, with an APR that goes between 9.8% and 35.7%. This loan is intended for strong businesses with good personal credit, but you will also need a personal credit score of at least 600, not to mention at least one year in the business. Your annual revenue has to be of at least $50,000.

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