Business Loans for Bad Credit

Is your bad credit preventing you from getting a loan? No worries! Evergreen Funding Solutions has just the right loan option for you, for we believe a business is more than its FICO score.

Traditional lending organizations depend way too much on FICO score to make lending decisions, making it impossible for businesses with low credit score to borrow from them.

An otherwise healthy company with good financials can lose out on getting even the smallest of business loans from traditional lenders due to bad credit.

Traditional lenders are way too conventional, focusing on keeping their risks to the minimum, lending only to businesses with good credit.

However, at Evergreen Funding Solutions we have loan options for businesses finding it hard to get loan from traditional sources.

Here, we believe that traditional funding institutions have an outdated approach towards lending, giving weightage only to FCO score, a mere number.

For us FICO score is just one aspect of validation, we take into account many other factors like your background, your financials, your business model, your employees, clients, future prospects, etc.

To us – your history is, as important if not more important than a mere instance or circumstance that led to bad credit.

For this reason alone, we have business loan options for businesses with FICO score as low as 500. We offer varied loan options depending on your need and circumstances, working with businesses with bad credit.

So, don’t hesitate to reach us if you need a business loan, even if you have been denied one everywhere else. We are sure we’ll find something that works for both of us.

ABOUT BUSINESS LOANS FOR BAD CREDIT

Bad Credit Business Loans are of varied terms, at different interest rates and loan amounts, just like any other loans. However, these loans come with certain requirements, most basic being that you should have been in business for at least 2 months and a gross revenue of at least USD 8000.

Our Bad Credit Business Loans involve a daily or weekly pay back program, depending on your eligibility. After you receive an agreed upon loan amount through wire transfer or ACH deposit, a daily (5 day week) or weekly debit of an agreed upon amount will be deducted from your account over the course of loan.

FACTORS AFFECTING BAD CREDIT BUSINESS LOAN APPLICATION

Here is the list of certain factors that impact your bad credit business loan application:

Credit Score– Even though bad credit loan is for businesses with bad credit, but the range of bad varies between 500 to 660 FICO score. And of course, the better the score the better the chances of loan approval at an attractive rate. So, every business must try to improvise on credit score nevertheless, despite the loan approval.

Business Revenue– The more the business revenue, the greater the chances of approval of bigger loan amounts.

NSF’s– Every time a cheque bounces due to insufficient balance in your business checking account, you lose out on points for loan approval. As businesses with more NSF’s are riskier and unreliable.

Negative Balance in Business Checking Account– A negative balance in your business checking account for more than 4 days every month, is a deterrent in your loan application process.

Average Balance in Business Checking Account– This goes without saying, the more the average balance in your business checking account, the better the chances of loan approval.

Monthly Deposits– The frequency and extent of monthly deposits in your business account makes a huge difference. A business with 5 to 7 monthly deposits every month has better prospects of getting a loan approval.

Length of Business– The older the business the better it is. As for businesses who have been in operation for couple of years are in a position to negotiate better loan terms.

Existing Debt– If your business already has way too much debt, then you may find it hard to get more loans as it’ll be harder for the lender to establish a plan that works with your debt service cover ratio.

Online Presence– Your business’s online presence, especially what others have to say about you impacts our decision more than you’d think. As businesses with positive reviews have better prospects in future in this digital age.

List of Documents Required for Bad Credit Business Loan Application

• Identity Proof (Drivers License)
• Bank Statements
• Business License
• Ownership and Registration Documents
• Business Property Lease Agreement
• A Voided Cheque
• Tax Returns (Business and Personal)
• Balance Sheet
• Profit and Loss Statement of last few years
• Business Debt Schedule (if possible)

SMALL BUSINESS LOANS FOR FICO SCORE 500 PLUS- STANDARD LOAN

Loan Term– 6 to 10 months

Interest Rate– 12% to 45%

Loan Amount– $5,000 to $1,50,000

Minimum Credit Score Required– FICO score of 500 at least

Time in Business Required– At least 6 months

Minimum Monthly Deposits Required– 5 to 7 Monthly Deposits

Minimum Monthly Revenues Required– At least $10,000

Maximum Number of Negative Days– Not more than 4 in a month

SMALL BUSINESS LOANS FOR FICO SCORE 500 PLUS (ONLY 2 MONTHS IN BUSINESS)- STARTER PLUS LOAN

Loan Term– 2 to 5 months

Interest Rate– 12% to 45%

Loan Amount– $5,000 to $20,000

Minimum Credit Score Required– FICO score of 500 at least

Time in Business Required– At least 2 months

Minimum Monthly Deposits Required– 5 to 7 Monthly Deposits

Minimum Monthly Revenues Required– At least $8,000

Maximum Number of Negative Days– Not more than 4 in a month

SMALL BUSINESS LOANS FOR FICO SCORE 550 PLUS- PREMIER LOAN

Loan Term– 6 to 12 months

Interest Rate– 12% to 32%

Loan Amount– $5,000 to $2,50,000

Minimum Credit Score Required– FICO score of 525 at least

Time in Business Required– At least 12 months

Minimum Monthly Deposits Required– 2 to 5 Monthly Deposits

Minimum Monthly Revenues Required– At least $10,000

Maximum Number of Negative Days– Not more than 3 in a month

SMALL BUSINESS LOANS FOR FICO SCORE BETWEEN 550 TO 660- PREMIER PLUS LOAN

Loan Term– 9 to 18 months

Interest Rate– 12% to 25%

Loan Amount– $15,000 to $10,00,000

Minimum Credit Score Required– FICO score of 550 to 660

Time in Business Required– At least 2 years to up to 6 years

Minimum Monthly Deposits Required– 5 to 7 Monthly Deposits

Minimum Monthly Revenues Required– At least $10,000 to $15,000

Maximum Number of Negative Days– Not more than 3 in a month

COST OF BAD CREDIT BUSINESS LOANS

Origination Fee- Origination fee is the administrative cost of processing a loan.

Factor Rate- The rate at which cost of funding is determined.

Closing Costs- Is the combined set of costs in dispersing the loan.

Underwriting Fee- Underwriting fee is what the lender charges for verification of documentation.

Application Fee- Application fee is processing fee to check your eligibility for the loan.

Processing Fee- Charged for processing loan documents.

Late Payment Fee- An interest fee on late payments.

Pre-Payment Fee- A fee charged when you repay the loan earlier than expected.

Other Miscellaneous Fees- There may be other miscellaneous fees varying from lender to lender, such as in-house processing fee from one step to another. Do check with your alternate lending institution about such fees in advance.

ADVANTAGES OF BAD CREDIT BUSINESS LOANS

Bad Credit business loans can be a savior for businesses finding it hard to secure a business loan the traditional way. Doing business is tough, and bad credit is easy to come by. However, a business with bad credit score does not make it a bad business. Which is why small bad credit business loans are amazing, they give a chance to businesses to whom no one else does.

Credit Scores- Almost all credit scores are eligible (minimum being 500) for bad credit business loans. This gives us a chance to make it work for most businesses with low FICO score.

Documentation- Very easy, basic documentation involved for these loans.

Business Requirements- At Evergreen Funding Solutions, we require your business to have started for only 2 months, with only bare minimum revenues, to clear the eligibility mark.

Turnaround- Our small bad credit business loans have a relatively quick turnaround. This is particularly important for small business in dire need of immediate cash.

Funding– The most common reason for small businesses to fail is lack of funds, as small businesses are mostly bootstrapped. Through a bad credit business loan, you can fund your business no matter what (provided you understand the costs and risks involved).

DISADVANTAGES OF BAD CREDIT BUSINESS LOANS

Rate of Interest- Bad credit business loans have higher rates of interest compared to traditional loans, taking in to account the higher risk associated with such loans.

Payback Period- Pay back period for such loans is usually shorter than traditional loans.

Payment Options- Payment options are usually daily or weekly, never monthly in bad credit business loans.

Personal Guarantee- You need a personal guaranter to attain these high risk loans.

RISKS OF TAKING BAD CREDIT BUSINESS LOANS

A business with bad credit is already not popular with lending agencies; hence, taking more debt comes with certain risks-

• The biggest risk is the uncertainty involved repaying this high risk, high interest loan.
• The risk of going further into debt, if unable to pay, can be really scary.
• Another risk is not understanding the high cost of such financing.
• The risk of over financing or under financing your business.
• The risk of failure, what if you never make back the money you are putting in your business now.
• Making unreliable predictions and overestimating your financial needs, which may result in unnecessary interest loan on the business.
• The risk of not having a viable business plan.

USES FOR SMALL BUSINESS BAD CREDIT LOANS

Most small businesses need financial help from time to time in early years, even if they have a bad credit score. A bad credit business loan gives them an opportunity to function properly, realize their unmet potential giving them an opportunity to grow. Here are some most common uses you can put your loan to-

Taxes- A small business with bad credit may have tax liens in its profile, hampering its ability to secure financing through traditional means. A loan by Evergreen Funding Solutions in such circumstances can help them get out of this situation at the earliest, enabling them to work upon their credit profile.

Day to day operations- A small business may find it difficult to run day to day operations due to lack of money during slow business cycle, often missing out on rent or salaries. Through our bad credit loans, you can avoid such a situation, keeping your landlord and employees happy.

To consolidate debt- At Evergreen Funding Solutions, we help you consolidate multiple debts into one at favorable terms. Debt consolidation may save you huge amounts of money in interests and time, not to mention the complexity of having multiple loans.

For unexpected circumstances- Unexpected circumstances are a normal occurrence for businesses; for a broken machinery or crashed computer could lead to unexpected expense, taking your finances for a toss. A small loan in such situation can help you get by, when it may seem impossible otherwise.

About Evergreen Funding Solutions

We are an alternate financing organization with unconventional approach towards lending.

We are not crazy about credit scores ( as is evident), for we believe they don’t tell the whole story, they don’t take into account many aspects of a business’s financial history, and most importantly, because they are rigid (with an outdated calculation process).

Rather, we believe in simplicity, efficiency and a no non-sense approach to business financing.

Our professionals consistently ensure quality and effectiveness.

We offer high-level service to any type of business. We are passionate about helping you swim across the murky waters of business uncertainty and finance.

Unlike so many financial institutions, Evergreen Funding never leaves you hanging in the middle. We have a dedicated team of professionals that will immediately respond to your questions and queries through phone or email.

Also, at Evergreen Funding, we delegate a dedicated business financial consultant to your case, who acts as single point of contact, who knows your business and will guide you on how to best incorporate the right product.