Getting a secured business loan for people with bad credit is a great way to help establish credit in your company's name.
Most secured business loans require a deposit equal to the credit line your are seeking (This can be equity or cash). Make sure they report your payment monthly to the major credit bureaus. Making your payments on time monthly will increase your business credit rating.
There are steps you should take before trying to obtain a secured business loan with bad credit. First, incorporate your business and obtain a EIN number (This will protect your business from your personal creditors by separating your business credit from your own credit rating). Second, open up a business checking account.
Once you have established your corporation and have opened up a business checking account with it's own EIN number, ask your bank or credit union if they offer secured business loans to help you establish your business credit rating. If they don't, we have listed a few lenders for your convenience that offer secured business loans below.
One company that can help you find a secured business loan is iBank. Loans range from $25,000 up to $1,000,000 for a term up to 30 years and can be used for equipment financing to working capital. To find out more information on the services iBank offers please visit their website at http://www.ibank.com/.
Bank of America is a bank that offers cash secured business loans that range from $10,000 up, for a term up to 5 years and can be used for purchasing inventory and materials, purchasing vehicles or equipment ,improving cash flow or working capital, refinancing debt, and financing accounts receivables. These loans offered by Bank of America can be secured by your CD or savings. To learn more or to apply please visit their website at http://www.bankofamerica.com/.
Disclaimer: The above information was written in good faith but we cannot guarantee accuracy. Please check with lenders for loan qualifying criteria. If you feel our information is inaccurate or you would like to add information on secured business loans or list additional lenders, please email us at [email protected]