Getting a small business loan for people with bad credit is not a simple task. In fact, it is easier to obtain a unsecured personal credit card. Whether your business is a
sole proprietorship, limited liability or a corporation, you will still be required to use your own personal credit background if your company has no established credit history.
There are steps you can take to help you obtain a small business loan with bad credit by separating your own credit history and establishing your company's own credit profile. First, incorporate your
business and obtain a EIN number (This will protect your business from your personal creditors). Second, open up a business checking account. Finally, ask a family member, friend or business partner
to co-sign.
If you own your own home you may be able to use the equity in the home to obtain a loan for your small business.
If you still are not able to get approved for a unsecured small business loan, then ask your local bank if they will issue you a secured business loan to help you establish a credit history in your company's name.
Here is a good source to help you obtain a bad credit unsecured bad credit business loan
with prosper.com that accepts credit scores as low as 520.