For offsetting bad credit factor it would be wise to opt for secured bad credit small business loan which is provided against home or any asset of the borrower. The lender has little risks in providing loan as it is well secured. Secured Bad Credit Small Business Loan come at competitive rate of interest. The loan amount will depend on collateral value. The loan is best suited for greater borrowings. Secured Bad Credit Small Business Loan can be conveniently repaid in 30 years.
If you require smaller amount then you can opt for unsecured bad credit small business loan without collateral. But the lender charges interest at higher rate, making it a little costlier. You are also required to repay the loan in 5 to 15 years of duration.
Interest rate on secured or unsecured bad credit small business loans is determined on your credit score. The lower the credit score goes, the higher is the interest rate charged on it. So if you have a low credit score, better first take steps like paying easy debts, to improve it and then apply for bad credit small business loan.
Make sure to take a convincing and assuring loan repayment plan to the lender. Also take all business records as you may be proving that your business has the capacity to generate income shortly. Apply for the loan to online lenders preferably for competitive rate loan and for cost free processing of the loan.