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If you are like many young business people, you are probably wondering how to get a small business loan with bad credit. While this may seem like a daunting task, especially in these tough economic times, there are always options for those who know exactly where to look.
For most people, their start will begin with large banks. This is a waste of time. Large banks are very regulated, and the representatives that you speak to are little more than mouthpieces for the corporation. Smaller banks, by contrast, are more competitive and have representatives that have more authority in the credit lending process. Better still are credit unions; credit unions are extremely solvent and secure, have very low interest rates due to the lack of overhead and profit, and are very flexible with their customers.
You may also want to consider an SBA loan. SBA loans are a very good way how to get a small business loan with bad credit. They offer special programs to women, minorities, veterans, the disabled, and other types of businesses, particularly those that are looking for green development. One advantage of the SBA is that you can apply for multiple small business loans at the same time, essentially giving you the effect of a single large business loan. The reason this is is because all credit pulls made within the period of two weeks essentially count as one pull, for the purposes of adversity on your credit score. Though the SBA is a branch of the chamber of commerce, and the single largest guarantor of loans in the United States, they do not provide their own branches, and you will have to seek their loan policies through a bank.
You may also want to consider P2P lending. P2P lending is becoming, once again, a highly effective method for distribution of credit from small venture capitalists. Because the resources for P2P lending are much more accessible now, it is easy, with thanks to websites like virginmoney.com, to get the business resources you need to conduct a loan in a professional manner.
I hope this has provided you with an answer for how to get a small business loan with bad credit. As you should be aware, the money is always available, it’s just a matter of going out and finding it.