Seeking loans from family and friends is also a good option. According to statistics, about 50% of families and friends like the idea of small business and entrepreneurship, and come forward to help someone in the business. This is a very good option as no relatives or friends look into installment loans for bad credit scores before giving a loan, as they believe in one’s character.
Lending from Suppliers and Vendors
Many businesses thrive on one’s vendors and suppliers. If the supplier is ready to supply products on credit and then report to the credit agency, then it is going to be a good option to improve the credit scoring. But the credit scoring will improve only if payment is done on time.
Business Credit Cards
Business credit cards help a businessman to improve his credit scoring and at the same time get finances to improve his business.
Many non-profit organizations and online non-bankers lend microloans to entrepreneurs anywhere between $5000 and $50,000. These loans are specifically designed for women and minority entrepreneurs and also for companies who work for economic empowerment zone. These are really excellent for people with a low credit score, but with a higher rate of interest. But, compared to credit cards and other loans the rate of interest is nominal and affordable.
These are a few loan options for small businesses with bad credits, which may help one to either start a new business or develop an already existing business with confidence.