Only forty-eight percent of small businesses will celebrate a five-year anniversary. Too often people go into business without carefully planning for the long term. The inability to keep the doors open is closely tied to their inability to access capital.

For a business to succeed they have to be able to get their hands on money when the need arises. A business owner with bad credit is at a huge disadvantage. Their inability to get a small business loan could mean the death of their business.

The good news is there are loans to consider. Some lenders are willing to work with business owners with less than perfect credit.

Keep reading for five bad credit loans to consider in 2019.

Loans to Consider:

Online Short-term Business Loan

Also known as working capital loans, these short-term loans are increasing in popularity. getting a small business loan through a traditional lender is extremely difficult if you have bad credit even if you have a successful business.

Regardless of the condition of the business, most lenders rely on the business owner’s personal credit history and score.

With an online short-term business loan, you can have the money you need in a matter of days. You will bypass most of the stringent rules of a bank. The lender simply wants to know if you can repay the loan.

Hard Money Loans

Hard money lenders are not typical financial institutions like banks or loan companies. Instead, these lenders are business people willing to take a risk on other business people.

Collateral is required for hard money loans. They are popular for those in the construction industry because the collateral is generally the project being built.  Contractors pay interest-only until the project sells and then the balance is due.

Collateral Loan

A collateral loan is similar to a mortgage or car loan. For a business owner with bad credit, this type of business loan means using company assets to secure the loan.

Assets such as company vehicles, equipment, or the building that houses the business can be used as collateral.  These bad credit loans should be entered into with great caution. Failure to repay the loan could cost you valuable assets needed for the business to operate.

Account Receivable Loan

Account receivable loans are loans that are extended to business owners with outstanding receipts. If you have a business that does the work prior to receiving payment, this loan can help.

You will need to to pay on the loan as you await payment. it is important to have collection procedures in place.

Business Credit Cards

Like personal credit cards, business credit cards can help a business owner get capital. Cash advances on the available balance are another option for business owners.

Are You a Business Owner Looking for a Loan?

Don’t let the fear of rejection stop you from checking out these loans to consider for your business. One is sure to meet your needs.

Remember, bad credit business loans can help you rebuild your credit. Go ahead and contact a lender today.

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