One of the biggest challenges that new startups face is acquiring capital that’s necessary for initial growth. The startup owners can use that capital for purchasing equipment and machinery to kickstart their operations. Now, businesses or individuals can borrow startup loans for bad credit.
If you have landed here looking for how to borrow startup loans for bad credit, you must read this article in full.
What are the 3 ways to get a startup loan for bad credit?
Lendio Start-up loan for bad credit
Lendio is one of the leading companies that offer startup loans for bad credit. If you are planning to start a small business and need an immediate loan, yet you are not sure where to go because you have a very bad credit history.
Well, fret not, because Lendio has got you covered. The company allows you to apply for multiple business loan options in quick time. The vast library of a network of software will surely help you to find a suitable loan option, even if your credit score is just above 500.
Once you are on the website, you can apply for short-term loans, line of credit (LOC) loans, merchant cash advances, SBA loans, equipment financing loans, and much more.
Accion – Empowers women and minorities
Accion is a popular lender that offers short-term and medium-term loans. It is a nonprofit CDFI initiative that empowers women and minorities. That is right, Accion particularly helps those women who want to open up their own business but don’t have money for investment. Other than women, Accion, also offers loans to businesses owned by minorities. Such businesses are entitled to get micro-loans ranging from $50K to $1 million.
Moreover, the best thing about this lender is that even if you have a credit score between 550 and 575, you are eligible to apply for a loan. However, the problem is, Accion operates region-wise. For example, if Accion operates in your region and the loan you want is not available in your region, then you will not be able to apply for it. Moreover, the lowest eligible credit score also varies from region to region.
Apart from this, low-interest microloans, target marginalized business owners, and monthly repayment options make it the best option for – women and minority business owners – to acquire startup loans.
PayPal working Capital Loans for PayPal sellers
Do you already have your business on PayPal? Or, are you planning to start one? Whatever the case may be, you can now acquire short-term loans via PayPal. These loans are similar to merchant cash advances. This is why you don’t need a credit score for the PayPal working capital loan at all. Yes, you read it right, if your credit score does not allow you to borrow a loan, fret not, you don’t need one with PayPal.
Moreover, there is also no interest involved. You must be wondering, why PayPal is being so generous? There must be something fishy going on behind it. Well, there is nothing to suspect about. When you borrow a loan from PayPal, it simply charges you a one-time fee, which you pay with the repayment of your loan. Other than that, PayPal will charge a small percentage of your sales until you repay the loan in full.
To apply for the loan, you can get access to all the information via your PayPal account. Before sending your application to PayPal, ensure that your account is active for at least 3 months and generates a certain number of sales, at least $15K per year, if it is a business account, or $20K annually if it is a premier account.
Apart from direct PayPal loans, if you are not a PayPal seller, you may still be eligible to apply for PayPal loans via Loan Builder. However, to be accepted, you will need to run your business for at least 9 months.
Above we have mentioned the top three ways to borrow startup loans for bad credit. If you were unable to pay your debts before, and ended up with bad credits, but you still want to start afresh, you can do it. Even if you have a bad credit score, you can apply for acquiring a startup loan from any of the three companies mentioned in this article. It’s the right time to become an entrepreneur and fulfill your dream.