Online Small Business Loans with Bad Credit
Contemporary society is so much reliant on digital acquisition of information and most people do their social, economic and even political activities at the comfort of their homes using their computers. Therefore many people have opted to provide acquisition of loan services through the internet to avoid the regular hassle of queuing in banks and financial institutions to get financial aids for their business ventures.
Some sites like www.accion.com ; www.prosper.com; www.zopa.com; www.count-me-in.org (for women business owners) and www.americaonefunding.com and www.americaonefunding.com have come up to offer financial aid to businesses especially those with bad credit histories and low credit scores. These loans are usually limited as compared to the rest and most lie at $5,000 to $25,000. These sites are very efficient and effective as a source of finance especially to these individuals with poor credit histories. They also become referrals later on to credit bureaus whenever individuals make payments timely thus help in raising ones credit score. Some of these sites include:
For borrowers who do not posses good credit histories and high credit scores, this option usually has a higher interest rate than any other options available. Taking for example, CirclLending’s Business Private Loan Index identified that individuals who acquired loans from family and friends paid interest rates upto 7.6%. However sites like Prosper and Accion charged 12% and 20% respectively on amount lended. The higher rates of interest account to the fact that small business loans with bad credits creates a much higher risk than any other loans, thus the interests take up as much compensation as possible.
However, those who are familiar and regular users of credit-card level interest rates my find this rates more affordable. It should be noted that small business loans agreement may inhibit you from paying partially but credit cards debts can be paid for partially.