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How to Get a Business Loan With Bad Credit


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  Entrepreneurs with poor business credit can still get loans, but their options differ, as lenders weigh both default risk and overall financial health.

The article from AOL Finance discusses strategies for obtaining a business loan despite having bad credit. It highlights that while bad credit can make securing a loan more challenging, it's not impossible. Key points include exploring alternative lenders like online lenders, peer-to-peer lending platforms, and microloans from nonprofit organizations which might be more lenient on credit scores. The article suggests improving your credit score before applying, by paying down debts and ensuring all payments are current. It also recommends preparing a solid business plan to demonstrate to lenders the viability and profitability of your business. Other options mentioned are offering collateral, seeking a co-signer with good credit, or considering invoice financing or merchant cash advances, which focus more on business revenue rather than personal credit. Lastly, the piece advises on the importance of comparing loan terms, understanding the full cost of borrowing, and being cautious of predatory lending practices.

Read the Full AOL Article at:
[ https://www.aol.com/finance/business-loan-bad-credit-155506909.html ]

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