To obtain a business loan despite having bad credit, get a merchant cash advance, business credit card or microloan, explains Fox Business. These financing options help with creating a business and repairing damaged credit.
If a business wants to repair its credit as well as get a small amount of money for financing, then a business credit card serves as a possible option. These credit cards provide financing that can help rebuild a poor credit score, according to Fox Business.
In the event the business needs a large sum of money, a merchant cash advance or microloan serve as viable options. A microloan provides up to $50,000 to a business, and the credit requirements to get one are more lenient than those for standard loans, according to Fox Business.
A merchant cash advance works a bit differently than a standard loan because it gives a large sum of money to a business in return for a set amount of the business' credit card sales. Another benefit to merchant cash advances is that they work quickly, and institutions can approve requests as well as forward money to the business owner in as little as two days. However, the interest rates for these loans are usually higher than traditional rates, according to Fox Business.