Last Updated on October 12, 2022 by Shield Funding Team
So, you need a business loan, but you have bad credit? As you probably know, today you definitely have the option to get a bad credit business loan, but you may be wondering what that really means. Here is everything you need to know about bad credit business loans presented in a Q/A format that you can read in less than 5 minutes.
Q: Can I REALLY get a business loan if I have bad credit?
A: Yes, absolutely! There are several funding options for business owners with bad credit. Instead of approving a small business loan based solely on your credit report, alternative lenders will look at your actual business finances. They will want to know how long your business has been in operation, how much revenue you are generating each month, and how much you need.
Q: What information do I need to provide to be eligible for a bad credit business loan?
A: To be eligible, you must fill out a short application, your business needs to be in operation for 4 months, and you must provide recent bank receipts or credit card statements. You must show that you have a minimum of $5,000 per month in gross revenues (if you accept credit cards) and approximately $20,000 (if you don’t). That’s all the information you need to provide.
Q: How long does the application process take for a bad credit business loan?
A: One of the best things about getting a bad credit business loan is the application time is short. All you have to do is fill out a quick online form and an application will be automatically emailed to you. Then, you fill it out and sign the application, as well as send in 4 months of statements, and your application is ready for review and approval. The general approval process is 1 to 2 days, yes that fast!
Q: How much funding can I get?
A: There are several options, but at Shield Funding, your unsecured business loan or business cash advance loan ranges up to $500K+.
Q: Do you have to switch your processing company?
A: No, at Shield Funding, we do not require you to switch your processing company.
Q: How do I pay back my bad credit business loan?
A: It’s easy. If you switch your credit card processor, then we will setup the account so a small percentage of the generated sales are allocated to your business loan payment. If you do not switch your processor, then we set up a lockbox with your processor and the small percentage of the generated sales is deposited towards paying off the loan. In the event you don’t process credit cards, Shield Funding offers bad credit unsecured business loans. With these loans the payments are deducted from your bank account in a process similar to direct deposit.
Q: What happens once the bad credit business loan is paid off?
A: Once your loan is paid off, we will no longer take a percentage of your sales.
Has it been 5 minutes? Now you now know everything there is to know about getting a bad credit business loan with Shield Funding. To get started, simply fill out an application today. We can’t wait to help you.