A construction equipment loan is a great way to obtain the capital you need to purchase the equipment for your business. However, if your credit is that great, you may fear that a loan is out of your reach. Fortunately, some lenders recognize unforeseen circumstances that can blemish the credit of even the most promising small business owner. These are six of the best options for bad credit business loans.
1. Overall Top Option for a Construction Equipment Loan
Small business loans and financing specifically for equipment are the two main options for business owners who need to purchase equipment. First Capital Business Finance offers both of these options, making us your best overall choice for business loans for bad credit.
Small business loans are available to borrowers with credit scores of 500 or higher and a minimum monthly gross income of $10,000. Our flexible financing options are available in all 50 states and do not require any real estate or assets to secure. Loan amounts are available from $5,000 to $2 million in terms of 3-24 months. You must have been in business for 6-12 months to qualify for a small business loan, but equipment financing is available to startups.
2. Top Option for Borrowers With Poor Credit
Different lenders have different guidelines for what they consider to be a “good” credit score. However, generally speaking, a credit score between 600-700 is considered “fair,” while a score that dips below 600 is “poor.” If your credit score falls below 550, most lenders will consider that in the “extremely poor” category. Fortunately, even if your credit score is in this category, there are still lenders who may be willing to work with you.
BlueVine offers term loans, lines of credit, and invoice financing to borrowers with credit scores as low as 530. You need to have been in business for at least six months to qualify and have annual revenues of at least $100,000. Financing is available in amounts from $5,000 to $5,000,000, and you may have access to your money in as little as 24 hours after being approved.
3. Top Option for a Customizable Construction Equipment Loan
If you need a loan that is tailor-made for your specific circumstances, LoanBuilder may be the best choice for you. LoanBuilder is owned by PayPal and accepts credit scores of 550 or above. Once you are approved, LoanBuilder allows you to modify the loan amount and term length to arrive at the repayment option that fits your budget. To qualify, you will need to have been in business for at least nine months and generate at least $42,000 in annual revenue.
4. Top Option for Businesses With Good Cash Flow
If your business is doing well, producing lots of revenue and maintaining an excellent reputation, but you just need some cash to fund a new project, Funding Circle can be the right choice. Funding Circle is a peer-to-peer lending network that favors businesses with good cash flow and customer reviews. This program will require a minimum credit score of 620 and at least $150,000 in annual revenues. Being in business for at least two years is also a requirement.
5. Top Option When You Need Cash Fast
OnDeck offers both term loans and lines of credit up to $500,000 and can often disperse funds on the same day as the application. You will need to have been in business for at least one year and have a credit score of 600 and annual sales of at least $100,000 to qualify.
6. Top Construction Equipment Loan for Comparison Shoppers
Lendio is a lending marketplace. Rather than directly loaning money to borrowers, it matches borrowers up with the lenders that best fit their individual needs. This can be particularly useful for borrowers with bad credit because the service only matches you with lenders you can qualify for. Lendio works with most of the other lenders on this list but makes it easier for you to compare the various offers you are eligible for and choose the best one for you.
Whether you are a startup trying to finance the necessary equipment to get your business off the ground or need a cash infusion to cover payroll during these difficult economic times, the small business lending experts at First Capital Business Finance are ready to work with you. Apply online now or call us at 888-615-7623 to get started.
The 6 Top Construction Equipment Loans for Bad Credit 2020 | First Capital Business Finance