Bad Credit Startup Loans: Get A Startup Loan No Matter Your Score

With the ongoing buzz about credit scores and years of business history as criteria for obtaining most business loans, startup owners must be left wondering where to go.  Expanding a new business is not easy, and it gets trickier if you don’t have backup sources of money to depend on when financial storms start hitting.

For now, forget about banks. Think alternative funding — loans offered by microlenders, crowdfunding solutions, or invoice factoring. So where can you get small business startup loans no credit checks products?

  1. Kiva U.S—For Entrepreneurs with an extensive network of personal connections)

Peer-to-peer lending or Crowdfunding is one valid way to source funding for a startup or a business with bad credit. Kiva offers such short-term installment loans with 0% interest.

Terms & Conditions

  • No credit score checks
  • No collateral needed
  • No time in business checks
  • Borrowing amounts Up to $10,000
  • Loan Term: 6 – 36 months
  • APR: 0%

Key Requirement: Depending on your loan size you must be backed by 5 to 35 lenders from your network of family, friends, and business contacts, etc. to get funding from the public.

  1. Accion— For entrepreneurs with a plan of business and little personal debt

Accion, the nonprofit small business lender, offers medium-term installment loan products to both startups and enterprises in operation but have bad credit.

Terms & Conditions

  • 575 to 500 depending on the amount
  • No time in business checks but you must meet the following if you’ve operated for less than six months:

o    Your business must be home- or incubator-based

o    You must have no more than $500 in due debt

  • Repayments are monthly
  • Loans last 6 – 60 months
  • APR: 7% – 34%
  • Personal guarantees may be needed as collateral
  1. BlueVine— For new businesses already making revenue

BlueVine is a microlender, partly in the line of credit (LOC) lending sector because the requirements for Flex6, their 6-month business line of credit,  are easier for companies to meet compared to many other credit lines.

You can also seek invoice factoring services from BlueVine, more so if you are a B2B startup.

Terms & Conditions for their LOCs and invoice factoring

  • Lowest credit score: 600 for a line of credit; 530 for invoice factoring;
  • Time in business: 6 months for a line of credit; 3 months for invoice factoring
  • Revenue caps: $120,000 per annum for a line of credit; $100,000 per annum for invoice factoring
  • Borrowing amount for line of credit: $5,000 – $5,000,000
  • Term length for credit line 6 months
  • LOC APR: 15% – 78%
  1. American Receivable— For B2B firms and Startups with unpaid invoices

American Receivable offers invoice factoring to thousands of B2B businesses. Invoice factoring is where a company sells some of its accounts receivables at a discounted rate to a factoring firm in exchange for quick cash. The funding is based on your invoices, so it works only for B2B startups with unpaid invoices.

Terms & Conditions

  • No credit score checks
  • No time in business checks
  • Advance rate: 85% – 90%
  • Discount rate: 0.8% – 2% per month
  • The contract lasts 1 year

Conclusion

Bad credit should no longer stop you from getting a loan for your startup. However, visit these microlenders’ websites to find out which product will match your startup.

Author Bio: As the FAM account executive, Michael Hollis has funded millions by using small business startup loans no credit check solutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.

Bradley P. Bolden

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