Do you have a great idea for a startup company but feel that your personal bad credit is keeping you from getting your idea out there? Luckily, you have options. What most people don’t realize is that there are plenty of ways you can get small business startup loans with bad credit. Perhaps the most popular option is the unsecured business loan, which offers several benefits.
You Do Not Have to Put Up Collateral
An unsecured business loan means that you do not have to put up our personal home, vehicle or other property as collateral to get funding for your business. The unsecured loan allows you to take out the money you need to start your business and begin building business credit using your bad credit startup business loans.
Unsecured Loans Are Open-Ended
While secured loans typically have a predetermined end date, unsecured funding allows you to use funds when you need them as long as you meet the approval guidelines and make payments on your agreed upon terms so that you do not go into default. This means that you can use some of the money for things that are important to your business now and some of the money for important things down the line.
The Financing Does Not Have Restrictions
When you apply to traditional loans, you typically need to submit a business plan that details exactly how you intend to spend the money on your business. When you have unsecured funds, you can decide how to best put the money to use. As long as you are truly using it for your company, your lender will not interfere and tell you how to spend it. This means that you can use the money to purchase property or inventory, lease equipment, hire employees or head a marketing campaign.
The Credit Is Reusable
Typically, bad credit start up business loans are structured like a credit card. This means that you have a set line of credit but it is revolving and can be reused as you pay it off. For example, if you are approved for $50,000 and spend $20,000, you have a $30,000 limit left. However, if you pay back $10,000, your limit goes up to $40,000. You can keep spending and repaying the same $50,000 for as long as your line of credit is open with your lenders.
Unsecured Loans Are Easy to Receive
Getting small business startup loans with bad credit is easy when you opt for an unsecured loan. Most lenders offer easy set payments and flexible terms to match your company’s needs. In addition, there is almost no paperwork to fill out and your loan can be approved in as little as 24 hours. This means you’ll have money to start your business ventures in a matter of days.
When looking for a lender to provide small business startup loans with bad credit, always ensure you are working with a reputable company. They should be licensed and have a good reputation not only with the proper authoritative agencies but also with former and current customers.