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When it comes to your credit profile, it is always better to have good credit than it is to have bad credit. Small business loans, however, are not often made on the basis of good credit, as they are often startup loans, which are given to businesses with bad or even no credit, or loans that are just trying to augment an existing business. There are a couple of good avenues to take to getting a bad credit small business loan should you need one.

It is a good idea to take your requests directly to the roads less traveled. Big banks are not going to help you very much. It is much wiser to approach small banks, credit unions and private lenders, as they will be much more likely to hear you out and comply with your sales pitch. Small banks and credit unions also tend to be much more competitive with their small business loans, as they tend to provide most of the market for them and are able to provide loans with less overhead; both have less money that must be spent on advertising revenue, and in the case of credit unions particularly, no profit is needed for the organization to function.

P2P lending can be done through organizations such as, and The first two are primarily used for home loans, but nevertheless provide a wealth of options for other sorts of loans as well. is a site that simply provides the necessary legal resources so that loans between family or friends can be conducted in a professional manner. This is a much more popular method of lending nowadays thanks to online networking.

Another excellent source for a bad credit small business loan is the Small Business Administration (SBA). The SBA is the country’s largest guaranteer of business loans, with over two hundred thousand in its portfolio. The SBA provides a number of programs to veterans, minorities, women and start up businesses that are all easily accessible. Check with your local bank branch to see if they provide SBA loans to help get you started.

This Business article was written by Mark Karavan on 11/25/2009