YesMrBanker News You Can Use

What the Issue Is

So, you’ve got a less-than-stellar credit score and you need a small business loan. You’re probably wondering, “What now?” Well, you’re in the right place.

Why You Should Care

Having a low credit score doesn’t necessarily mean you’re out of options. Let’s debunk some myths and give you the lowdown on how to navigate these choppy financial waters.

The State of Credit Scores

What is a Credit Score?

Your credit score is like your financial report card. And just like in school, you want to aim for the high marks, but sometimes life has other plans.

Importance of a Good Credit Score

A high credit score can open doors—literally. We’re talking about business loans, mortgage approvals, and low-interest rates.

Reality of Credit Under 700

But what if you’re not part of the 700-and-above club? It’s not the end of the world. Here’s what having a credit score under 700 means for you.

The Challenge of Obtaining Loans with Bad Credit

What Bad Credit Means for Lenders

Let’s get real: Lenders aren’t eager to lend money to someone with bad credit. It’s like lending your car to someone who has crashed every vehicle they’ve ever driven.

Common Obstacles

Low credit score? Expect hurdles, from higher interest rates to outright rejection. But don’t lose hope; there are workarounds.

Unsecured vs Secured Loans

The Difference

Secured loans are like a leash on your pet, while unsecured loans are akin to letting your pet run wild. Both have their pros and cons.

Pros and Cons

A secured loan might get you better interest rates but comes with the risk of losing your collateral. An unsecured loan might be less risky, but it usually comes with higher interest rates.

Short-Term Business Loans

What They Are

Think of short-term loans as a financial espresso: quick, strong, and best consumed in small doses.

Eligibility Criteria

You might think a bad credit score will bar you from short-term loans. Not so fast! Many lenders are more lenient with short-term loans.

Business Line of Credit

Definition and Uses

Picture this: A business line of credit is like a safety net. It’s there when you need it but stays out of sight when you don’t. Essentially, it gives you access to a specific amount of money, which you can dip into as needed.

How to Qualify

Got a credit score under 700? Don’t sweat it too much. Many lenders consider other factors like your business revenue and operational history. So, even if your score isn’t tip-top, you might still make the cut.

Factoring as a Financing Option

How Factoring Works

Here’s an intriguing option: selling your accounts receivables at a discount to get immediate cash. Think of it as a trade-off. You get cash now, but you’re essentially giving away some of your future income.

Suitability for Businesses with Bad Credit

The beauty of factoring is that it’s not really a loan. You’re not borrowing; you’re selling an asset. This makes it easier for businesses with less-than-stellar credit scores to get the funding they need.

Invoicing Strategies

What is Invoicing?

Let’s simplify it. An invoice is just a formal request for payment. But how you handle your invoicing can make or break your cash flow.

How Effective Invoicing Helps

Effective invoicing is like good communication in a relationship. It makes everything smoother. Get your invoices right, and you’ll speed up payments and improve your cash flow, boosting your chances of securing a loan.

Big Tech’s Role in Financing

Tech Companies Providing Loans

Believe it or not, tech giants like PayPal and Amazon are getting in on the lending game. They’ve got the data and the resources to offer loans to small businesses, often with fewer hoops to jump through.

The Catch

Ah, but here’s the rub. These loans often come with higher interest rates and stricter terms than traditional bank loans. They can be a lifesaver, but be sure you read the fine print.

Navigating a Broken Lending System

Identifying Broken Elements

Look, no system is perfect. But when it comes to lending, some gears in the machine are downright broken, especially for those with bad credit.

Strategies for Small Companies

Don’t let a flawed system keep you down. There are alternative financing options and strategies to arm yourself with, like networking with smaller community banks or leveraging business assets.

Practical Steps to Improve Your Credit Score

Tips and Tricks

Just like a diet, improving your credit score takes time and discipline. Paying bills on time and reducing debt are your bread and butter here.

Timeline for Improvement

Don’t expect overnight miracles. Think of it as a marathon, not a sprint. Depending on your starting point, it might take months or even years to significantly improve your score.



Hey, I get it. Navigating the business loan landscape with a sub-700 credit score feels like sailing through a storm. But as we’ve seen, there are plenty of lifelines available.

What to Do Next

Your next steps? Do your homework, weigh your options, and don’t be afraid to seek professional advice. Sometimes the difference between sinking and sailing is asking for help.


  1. Is a credit score under 700 considered bad for business loans?
    1. It’s considered less than ideal, but not a dead-end. Various options and strategies can still get you the financing you need.
  2. What is factoring and is it a good idea for small businesses?
    1. Factoring involves selling your accounts receivables for immediate cash. It can be a good idea if you need quick funding and don’t qualify for traditional loans.
  3. How can I improve my chances of getting a loan with bad credit?
    1. Strategies include effective invoicing, building a good relationship with a community bank, or opting for alternative financing options like short-term loans.
  4. Are tech companies reliable sources for business loans?
    1. While they may offer easier approval processes, always read the fine print as terms may be less favorable than traditional loans.
  5. Is it worth trying to improve my credit score?
    1. Absolutely. A better credit score will give you access to better loan options and lower interest rates, saving you money in the long run.

Contact Us

By clicking “Apply Now ,Submit or Funding Estimate”, you (i) consent to receiving telemarketing calls and messages, including calls using an automatic telephone dialing system, from and those acting on its behalf at the telephone number you have provided above (including your cellular phone number); agree that this consent applies even if the number you have provided is currently on any state, federal, or corporate Do-Not-Call registry; and understand that you are not required to provide this consent as a condition of receiving any credit or services from and that you may apply for business credit by contacting us directly; and (ii) acknowledge that you have read Application Agreement and Privacy Policy and understand that you may opt-out of receiving communications of your choice from as provided in the Privacy Policy. We may update or amend this policy at any time with or without notice to you. We encourage you to periodically review this page for the latest information on our privacy practices.