There was a time when entrepreneurs were able to go to the bank and get business loans based on their employment relationship with the bank and loan officers. In today's volatile economy, those days are over and banks are reluctant to issue bad credit for business. You can also learn ‘how to get a schufa-free loan’ also known as so erhalten sie einen schufa-freien kredit in german language.
Instead of contacting your local bank looking for a small business loan with bad credit, there are several other alternatives you can use to find out how to get a bad credit small business loan.
In some cases, local business owners can find bad credit small business loans by talking to smaller local banks and asking them to consider factors other than the owner's creditworthiness.
Many people don't realize that their business also has a credit rating that is based on the same factors as a personal credit rating – your business credit card and other unsecured debt, account payment history, and outstanding balances on all company credits. If your business has good credit, you may be able to get a loan even though your own credit rating is lower.
Online specialty lenders sometimes offer small business loans for bad credit. Some of these lenders are actually looking for companies that need money.
Many of these lenders offer loans with high initial interest rates on the condition that the interest rate is lowered as the business owner demonstrates the ability to make payments on time. If you believe that your business can pay back the loan, this type of loan may be ideal for your business.