
Pros and cons of bad credit business loans
Bad credit business loans are attractive, but they aren’t without disadvantages.
About the author
Emily Maracle is a former small business loans editor for Bankrate.com. She is passionate about creating high-quality content to help educate and make complex financial topics accessible to all readers, especially those looking to start or grow a business.
Emily holds a bachelor’s degree in English Literature from the University of British Columbia. Previously, she worked as an editor and writer in the insurance and real estate industries, specializing in scaling content and businesses while broadening her knowledge in fintech.
Based in New York, Emily enjoys getting outside with her two dogs, reading, living sustainably and all things coffee.
Emily wants you to know
Getting a loan can be a long and complicated process. From prequalifying to meeting lender requirements and applying, the process can take weeks to months. Starting a business is a huge undertaking. I aim to empower others to make educated financial decisions and reduce the stress of taking out a loan — whether it’s their first or fifth. I'm also passionate about helping and advocating for minority business owners and underserved communities. Everyone deserves equal access to funding, whether that's personally or for their small business.
Many resources are available for new and seasoned small business owners, but it can take time to navigate. Funding inequality and wealth gaps in the U.S. also impact how entrepreneurs access these resources. Acknowledging this and providing tools for all small business owners to succeed is a small way I can help others.
— Emily Maracle
Like most careers, there are benefits and disadvantages to being a small business owner.
Lendio and Fundible are two online lenders. Learn which is best for you here.
Revenue-based financing bases repayment on sales or growth potential rather than the business’s creditworthiness
Buy now, pay later financing isn’t just for consumers, businesses can also consider it for their business financing needs.
The 5 c’s of credit are often what banks and other lenders use to evaluate a business’s creditworthiness.
Business insurance can protect small businesses, but there are many different types to explore.
Small business bridge loans can help businesses with short-term cash flow issues, but aren’t a long term financing option.
SBG Funding expands access to capital for businesses with established revenue that need a moderate to large amount of funding.