Unfortunately, we don’t all have great credit. That little thing that’s called a FICO score can have a big impact on your ability to borrow funds for the things that you need in life. Fortunately, there are many other options out there to get the funding you need. You just need to understand other business loan options for bad credit and what they are so you can take advantage of them to get the funding you want for your business.

Consider Internet Only Lenders

Just because you’ve been turned down by a traditional big bank, doesn’t mean that another online lender won’t lend you money. There are various peer-to-peer lending platforms out there that allow borrowers to receive loans from everyday people who want to invest their money. Most loans come with a simple application process and more lenient standards than those required by traditional big banks.

Short-Term Loans

Installment loans for bad credit are not impossible to find, rather, just difficult if you don’t know where to look. Short-term loans tend to be the best option for those with poor credit. These loans tend to come with a higher interest rate but will give you funds typically the same day that you apply. This can make getting money for emergency instances very simple and stress-free to do.

Credit Cards

Yes, you probably just tensed up a bit. We’ve all heard the phrase of don’t use your credit cards for anything but emergencies. However, they can be useful in some scenarios. If you’re having trouble getting qualified for a bank loan, you can still likely get approved for a credit card with one of many providers. Opt for the one that offers you the lowest interest rate.


Microcredit is a fairly newer type of alternative lending that is perfect for those who lack steady employment, collateral, and verifiable income. Many micro-loans are given for the purpose of alleviating poverty and supporting entrepreneurship. These loans tend to be small in their amounts, hint their name, but effective when you’re not particularly looking to borrow a lot of money.

Partner Funding

If the purpose of your loan is to fund your startup business, then you may want to consider getting a partner. There are many people who have an abundance of cash that are looking to invest their funds as a private partner in an innovative business. You can typically find these individuals at online meetups for your industry. Realize that most private partners will lend only to one particular industry.


Gaining popularity in the recent years, crowdfunding is becoming a popular way to finance small businesses and emergency situations. With this type of platform, you essentially give people information about why you need the money and send out invitations to those you know asking them to donate. Those who want to donate some money to the cause can anonymously donate.

As you can see, there are many options to choose from when it comes to alternative lending sources. You should start by assessing your needs. How much money do you need to borrow? How much time do you need to pay it back? This will give you a good set of criteria to go through the above options and identify the ones that will work best to fit your individual needs.


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