Business Loans
with Low Credit
Fast
Approval
Funding up to
$500,000
No Prepayment
Fees
Flexible
Payments
Business Loans with Low Credit
Small and medium enterprises often find themselves in a pickle due to cash flow problems. These businesses don’t have sufficient funds to run their operations. While a business might be profitable, its sustainability will be at stake if it does not resolve liquidity related problems.
However, the main issue when it comes to loan approval for small businesses is their low credit score. Business loans with low credit can be a tough bargain. Stats show that the approvals of loan applications in the US were around one-fourth by the alternative lenders in June 2021.
The numbers indicate how a bad credit score can hamper your chances of securing a business loan. Nevertheless, the United Funding Group is here to make it easy for you to access multiple financing options even with low credit.
Business Loans with Low Credit
The challenging economic condition due to the Covid-19 pandemic puts businesses at risk of closure. Getting a loan for a small business was never easy. On top of that, the pandemic is now making it more difficult for SMEs to have access to quick funds.
The FICO score can impact the loan amount, tenure, interest rate, and several factors. But we are here to try our best and work a solution for you regardless of the credit score. Let’s go through the importance of a good credit score and how it can put you at an advantage.
Why is Your Credit Score so Important?
One of the main factors that will come into play for your business loan is your credit score. Though the loan you are looking to take is for your business, many institutions will still consider your personal credit score. Various factors can impact your credit score, such as
Your reliability for paying back loans
The schedule of your payments (Whether you pay on time or late)
Debt-to-income ratio
In addition to this, there are different scoring models to calculate your credit score. The most common is the FICO (Fair Isaac Corporation). Below is a brief rundown about the FICO model:
800-850
The range in between 800 to 850 is considered the most exceptional. If you fall into this category, you can open yourself to a wide range of options available with the lender of your preference
740-799
Even a credit score in between 740 to 799 means it is an amazing score which makes you a low-risk borrower. The credit score allows you to select the lender and the loan option of your choice
670-739
The average credit score for many Americans falls in the range of 670-739. It is an optimal range that gives you access to various financing options with a significant chance of loan approval.
580-669
The range in between 580-669 makes it difficult to get a business loan. Many lenders won’t consider giving you a loan. Even those lenders who will agree to give you a loan are likely to charge you a high-interest rate.
500-579
Any individual with a credit score in between 500 to 579 is at high risk and will get fewer options. They will also have high-interest rates with strict loan terms and conditions.
740-799
Any credit score below the 500 mark is unlikely to qualify for a business loan at all.
Individuals with a FICO credit score in between 300 to 629 are likely going to be bad credit. The main reason many lenders do not approve small business loans are due to low credit scores. Nevertheless, you can get a business loan even with a low credit score with various lenders. The United Funding Group aims to help people with poor credit scores access sufficient funds to run their businesses smoothly
Different Types of Bad Credit Business Loans
Though you might now have several options with a bad credit score, you can still have different types of loans available. Here are a few of them.
Working Capital Loans
The easiest loan for you to get is a working capital loan. Working capital, just as the name suggests, allows you to pay for the day-to-day business operations. You can use this business loan to pay the employee's wages, taxes, or any expenditure. The best part is that this loan typically does not involve a lot of documentation or paperwork.
Short-Term Small Business Loans
The short-term small business loan gives businesses access to a significant amount. It is a lump sum capital amount that the borrower will pay back over a course with a fixed rate of interest on it. The payment schedule will vary from lender to lender
Merchant Cash Advances
Merchant Cash Advances is an optimal choice for businesses with high credit sales looking to get money against it. This type of small business loan allows you to get a good amount of funds in exchange for a percentage of your accounts receivable. Although merchant cash advance is an easy loan to get, it usually comes with a high-interest rate. You might find yourself paying more money throughout the loan's time than you expected.
Collateralized Loans
Getting loans for small business owners can be a challenging task. Even if they do get a loan, they will have to deal with many things such as high interest, etc. But a collateralized loan is the best loan that gives you more flexibility compared to other small business loans with a bad credit score.
Why United Funding Group?
Flexible Payment Plan
Get a repayment plan that is most suited to your business. With our business line of credit, you can set up the best way to replace your loan after your draw period.
Lower Interest Rates
Higher interest rates make it a lot more difficult to repay your loan. Get the best interest rate possible with United Funding Group!
Fast And Easy Processing/Funding
Our application process is relatively easy. Once you’re qualified, you’re good to go. The processing period is fast; funding is immediately after your application is processed.
Trust and Credibility
Partner with a trustworthy and credible lending partner! The United Funding Group is a certified lending partner with several years of experience. We aim to help you meet all your business funding needs.
No difficult Requirement
Our requirement to apply for a business line of credit is quite simple and easy to meet. There are no complex requirements; as long as your business has the basic requirements, you’ll get your credit.
How to Get Started
Fill the Application Form
Visit our APPLY NOW page to start your application process. Don’t worry about your privacy; our form is secured with the highest SSL standards. Ensure you fill out all the sections and provide the necessary documents for fast processing
Processing
You’ll get a business specialist that will help you with the rest of your processing period. With their help, you can set up the best draw period and repayment plan for your business
Receive Your Funds
You’ll receive your funds almost immediately after your processing is complete. With our business line of credit, you can make withdrawals when you want during the specified period.
Step-by-Step Guide for Obtaining Business Loans with Low Credit Score
Getting a business loan with a bad credit score requires proper planning and guidance. If you follow the right way, you can obtain a loan in no time. So, below are the three steps you should follow for securing a business loan.
Step 1 - Be Aware of Your Credit Score
Avoid missing out on any payments or delaying them
Try to increase the credit limit
Review your credit reports to see if there are any errors in it
Nevertheless, a bad credit score should not be a hurdle for you to get a loan. You can contact the UFG to help you out with it.
Step 2 - Shop Around and Look For Options as per your Eligibility Requirements
Before you apply for any loan, there are two things you should do. The first thing you need to do is find out the standard eligibility requirements that each lender needs. It usually includes credit score, business life, and the financial statement. Once you have all that information in front of you, the next thing you should do is look for options available. You can consider your business needs and then look for a suitable type of business loan that you can get with bad credit. It is best to discuss it with one of our advisors at UFG to get a better idea about it.
Select the Financing Option You Want
Once you know all the financing options available, it is time to choose one. You can pick which you believe has the best repayment terms and schedule.
Why Choose United Funding Group?
Businesses with low credit scores are often at a disadvantage. They have to go through multiple lenders to get a loan. Even if they manage to get one, it comes with a higher interest rate or large collateral. Therefore, the UFG is here to help you get the best business loans with low credit.
Our services open you to various benefits, such as:
The fast approval process with the loan in your hands within 24 hours
Ø Working with a business that a havebad credit score
Fewer formalities and paperwork for the loan process
All in all, if your business has consistent sales, decent bank deposits, and requires financing straight away, then the United Funding Group is here to help you out.
Final Word
A low credit score can impact and put the stake of your business at risk. You might have to agree to harsh loan conditions to access a small number of funds. Therefore, the UFG is here to make your life easy by giving you options for business loans with low credit.
You can browse through our website to know more about our services. If you want, you can give us a call, and one of our representatives will be at your service in no time.
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