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Bad Credit? No Problem! How to Secure a Small Business Loan

Small business loans can be essential for entrepreneurs looking to start or expand their businesses, but traditional lenders may not always be willing to work with businesses with bad credit. However, there are still options available for easy small business loans for bad credit. Here are some options to consider:

Online Lenders

Online lenders are becoming increasingly popular as an alternative to traditional lenders. These lenders often have more lenient credit requirements and may be more willing to work with businesses with bad credit. Additionally, the application process for online lenders is often quicker and more streamlined, with approvals and funding happening in a matter of days.


Micro-loans are small loans typically ranging from $500 to $50,000. These loans are often provided by non-profit organizations or government agencies, and they are designed to help small businesses and entrepreneurs who may not qualify for traditional bank loans. Micro-loans may have lower interest rates than traditional loans and can be a great option for those with bad credit.

Peer-to-Peer Lending

Peer-to-peer (P2P) lending is a form of online lending where individual investors fund loans for borrowers. These loans often have lower credit requirements than traditional bank loans, making them a good option for small businesses with bad credit. The P2P lending process is often faster and more straightforward than traditional loans, with funds being deposited directly into the borrower's account.

Invoice Financing

Invoice financing is a type of financing where a lender advances money to a business based on its outstanding invoices. This financing option can be a good fit for businesses with bad credit, as the loan is secured by the invoices rather than the creditworthiness of the borrower. Invoice financing can provide quick access to cash flow, which can be critical for small businesses.

Merchant Cash Advances

Merchant cash advances are another option for small businesses with bad credit. This financing option provides an upfront cash advance in exchange for a percentage of the business's future sales. The lender will typically deduct a portion of the sales until the loan is repaid. Merchant cash advances can provide quick access to capital, but they can be expensive due to high-interest rates.

While traditional lenders may not always be willing to work with small businesses with bad credit, there are still options available. Online lenders, micro-loans, P2P lending, invoice financing, and merchant cash advances are all options to consider for easy small business loans with bad credit. It's important to research each option and compare lenders to find the best fit for your business's needs.

Sencha can help you secure a small business loan through our AI-based engine. If you’re considering another type of financing, let us help you weigh your options.

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