One thing you need to know is that even if your credit score is poor, it is possible to get funds for your business. Sounds like a task but do not worry, there are several online lenders for bad credit score people. Here are some of your options…


A microloan is like a traditional bank loan but is easier to get for those with an average credit score or a bad credit. Like its name, they are small amounted loans. The highest limit of this loan is fifty thousand dollars or less because the credit requirements for microloan are lower, that’s why the price is low too. If this amount plan suits your business, then a microloan is your option.

Merchant Cash Advance:

Merchant cash advance is also known as a business cash advance. This option helps those with cash flow problems. If you need around 10 thousand dollars or less then merchant cash advance can be useful for you. If you are opening a nursery for kids, you can use this extra cash to bring in new tables, chairs and other few things. If you fail to miss a repayment or get late, then you will be in serious debt.

Family and Friends:

Well, if your credit score is really low and you need money, you can always ask your friends or family to invest in your business. Taking loans from family or help from a friend is sometimes a good option. They aren’t going to take interest rates or extra fees. But if both former and latter do not have enough money to lend, then this option isn’t for you. Besides, you will have guilt of repaying them late or not bring able to repay at all. So keep this as your last option.

Apart from these three loans, almost every traditional loan requires a credit score of at least 600 to get a good amount. You cannot use little cash and run your business. Here are some tips to improve your credit –

Start small and stick to the basics: If your personal credit history is bad, make sure your business and personal expenses are different and separated. Call collections agencies and decide what regular payments you can afford according to your money status. Pay all the bills early or on time. Do not delay any EMI payments.

Prepay everything: Not just prepaying bills will help you but all the payments prepaying will make a difference to your credit.

Ask small amounts: Try saving up as much as you can and ask for small amounts of funding if you take loans. Opt for loans when you need them too much and decide months before deciding your loan plan. If you have a hunch that you might need money to expand your office space after 1 year, then you can concentrate on improving your credit history till that time and may be eligible for a better loan.