A recent Black Enterprise article on winning loans with bad credit, takes a look at the alternate lending organizations OnDeck and Kabbage and reviews their requirements for small business lending.  Although, bad credit can be a limiting factor in this process, it is not the only factor when looking for a credit increase.  To qualify for a bank loan, or an increase in credit limit, a business generally has to make a minimum of $100,000 per year in revenue for a few years.  With alternative lenders, younger businesses can qualify but the annual sales can be more of a determining factor versus bad credit.

According to the article, “OnDeck works with small businesses that have annual revenue from $100,000 to $5 million, including doctors, dentists, restaurants, auto body shops, and beauty salons.”  Kabbage is a lending source for people with a credit score under 500 and provides instant cash from $500 to $100,000.  All advances must be paid back in full within 6 months (plus interest) however.

These two alternative lenders are a good place to start for newer businesses looking for additional business capital.  The best place to start is always your bank, but with the success rate of being approved for small business loans as low as 27%, (per SBA) it’s always best to have additional options.

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