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In these challenging economic times, getting a small business loan with bad credit is not an easy task. However, there are still a number of avenues that one can pursue in order to get the financing that he or she needs for the business.
If you need basic financing for smaller items, you will need credit cards. Small business credit cards are an excellent way to help build your credit score and get the immediate resources that you need in order to run your business. While bad credit can make these difficult to come by, you do have the option of getting a secure credit card, which is basically a credit account with a savings account held on the side as collateral.
The first such common avenue is the SBA. The Small Business Administration offers a wealth of different and very useful startup business loans not only to minorities and veterans, but also to a fair number of businesses that want to finance green businesses and other different types of endeavors. Though some of the SBA’s loan programs are small, there is a way to take advantage of them so as to give you the benefit of of a large loan. This is done through the use of the Microloan program, which offers loans in the amount of $35,000 or less (average loan size is $13,000), and the standards for these loans are somewhat relaxed. They are aimed at giving small businesses and other people who are facing difficulties the credit that they need. Luckily, more than one of these programs can be applied for at the same time without repercussions to your credit score. A few Microloans can easily give you the same benefits that you would seek in a larger loan.
You may also want to consider P2P lending. Many businesses have been financed by one of the three F’s: friends, family and fools. While the problem has often been the administration of these loans, it is now very easy to do thanks to the advent of web resources like virginmoney.com. This will enable you to conduct your business loan in a reasonable and professional manner.
There are always many avenues to getting a small business loan with bad credit if you are in a pinch, it is just a matter of knowing what all of your options are.