Published By Janet Gershen-Siegel at June 19, 2018
Written by Janet Gershen-Siegel
We know the best online lenders if you have bad personal credit.
There are several online lenders but only some of them will provide a loan if you have less than stellar personal credit. Qualifications including annual revenue and time in business requirements can vary. So can the maximum available amounts. Here are the details.
We researched the following online lenders and asked about their programs, rates, terms, and features. Also, only BlueVine and QuarterSpot confirmed our research.
Rates can rise and fall; this is normal when it comes to financing. Therefore, we suggest you investigate all online vendors which interest you to confirm our numbers before requesting funding.
BlueVine confirmed this information: BlueVine offers invoice factoring and lines of credit. For invoice factoring, there are no reserves or minimums. The BlueVine system syncs with your accounting software and they connect to QuickBooks Online. BlueVine also works directly with FreshBooks and Xero and others.
Rebates distributed on the same day. BlueVine offers up to $2,500,000 in invoice factoring financing.
Your business must be either B2B or B2G (business to government). BlueVine does not work with medical or healthcare industry businesses at this time. Also, the business must have revenues of $10k or more per month. 620 or better FICO score required for a line of credit. Submitted invoices must have a face value of $500 or more.
Payment term must be less than 13 weeks, but the due date also must be at least a week away.
Fees for invoice factoring: Flat 85-90% advance rates. Free ACH (1-2 day delivery). The cost is $15 per wire (same-day delivery). BlueVine will penalize you for deadbeat clients. If they don’t pay their invoice, you are responsible for paying. You have to have a consumer credit score of 530 or better.
BlueVine offers a true revolving line of credit for up to $150,000. They have 24 hour approval. Also, your business must have revenues of $10,000 or more per month.
Flex credit lines currently run from $5,000 – $100,000. Interest is as low as 4.8%. No maintenance or unused credit fees. You must have a consumer credit score of 600 or better.
One advantage is how easy invoice factoring is. Interest is also fairly low. You can get invoice factoring with a 530 or better FICO.
One disadvantage is, with invoice factoring you suffer a penalty if your clients don’t pay their invoices. Another is that you can’t use their services if your business is B2C.
Bond Street offers term loans of $10,000 – $1 million. Terms are up to 1 – 3 years. Bond Street will ask for both EIN and SSN.
Offer arrives within 3 days. Bond Street will only do a soft credit pull. 640 or better credit score is most likely to get a loan but Bond Street will look at other factors.
There is a 2 years’ time in business requirement. Required annual revenue is of at least $200,000.
Rates start at 6% and go up to 22%. APR works out to 8 – 25%. There is a 3 – 5 % origination fee.
Advantages are the soft credit pull. Also, Bond Street will look at factors beyond your personal credit if your FICO score is low. Bond Street can offer very large loans if you qualify. Disadvantages are the longer time in business requirement. Also, the maximum APR is very high.
Lending Club offers term loans. Business loans from $5,000 to $300,000. Loan terms 1 – 5 years.
Get a quote in less than 5 minutes. Funds are available in as little as 48 hours if approved. There are no prepayment penalties.
Annual Revenue must be $75,000 or more. You must be in business for 2 years or more. Personal FICO score of 620 or better is a must.
Rates of 5.99% – 29.99%. Total annualized rates starting at 8%.
Advantages are that the annual revenue requirement isn’t too high. Funds are available quickly. Disadvantages include high maximum rates.
OnDeck offers short term loans and lines of credit. For short term loans: $5,000 – $250,000. Terms are of 3 – 24 months.
You must have annual revenue of $100,000 or more. Personal FICO Score of 500 or better. You must be in business 12 months or more. There is an 8.5% – 79% APR.
For lines of credit: $5,000 – $100,000 available. There is a term of 6 months.
So you must have annual revenue of $100,000 or more. Also personal FICO Score must be 600 or better. You must be in business 9 months or more. There is a 13.99% to 36% APR.
Advantages include the low FICO score requirement for term loans. There is some flexibility for term lengths.
Disadvantages are the maximum APR for both term loans and lines of credit are extremely high. If your company cannot pay back a loan or line of credit, it could sink you financially.
Quarter Spot offers short term loans. $5,000 – $150,000 is available. Terms: 9 – 18 months. Quarter Spot will only do a soft credit check when you apply. QuarterSpot confirmed this information.
Your company must have annual revenue of $200,000 or more. You also have to have a personal FICO Score of 550 or better. But there is no fee to apply.
Minimal time in business: 12 months. You also must have a minimum average bank balance of $20,000. You must also show a minimum of $16,000 in monthly sales.
Borrower must own at least 50% of the business. Rates are 25% – 40%.
Advantages are that the personal FICO score requirement is relatively low. Minimum average bank balance requirement is also fairly low. Disadvantages are that maximum rates are rather high.
Rapid Advance offers standard, select, and preferred loans. For standard loans: $5,000 – $1 million available. Terms: 4 to 12 months.
Your company must have annual revenue of $120,000 or more. You must have a personal FICO Score of 580 or better. Minimum time in business: 2 years. 1.16 to 1.30 factor rate.
For select loans: $15,000 – $1 million available. Terms: 6 to 15 months. You must have annual revenue of $240,000 or more. Must have personal FICO Score of 620 or better. Minimum time in business: 3 years. 1.12 to 1.31 factor rate.
For preferred loans with Rapid Advance: $15,000 – $200,000. Terms: 9 to 18 months. You also must have annual revenue of $240,000 or more. Must have personal FICO Score of 660 or better.
Minimum time in business: 6 years. You must have minimum bank balance of $10,000 or more. In addition, borrowers must have at least 10 deposits from 5 different sources every month. 1.11 to 1.25 factor rate.
Advantages are a few choices for loan types. Also, maximum amounts available are high. Disadvantages are minimum bank balance requirements are fairly high. Annual revenue requirements are also high.
Getting funding with bad personal credit is not easy. Here are some pros and cons for the best online lenders.
The lowest personal credit score (FICO) requirement is 500 for OnDeck short term loans, although Bond Street will look past a low FICO score if other factors are favorable.
The most funding you can get is $2.5 million from BlueVine invoice factoring. The shortest time in business required is one year at both OnDeck and also QuarterSpot.
Borrowers with bad personal credit might want to take the steps to repair their credit or have another personal act as a guarantor. Or they could offer collateral, which can take the shape of anything from equipment to a 401(k) account.
Any of those would provide more options and the best online lenders would take less interest in a low FICO score if any of these factors were present.
As with all funding sources, make sure to read the fine print carefully. Your own individual requirements and needs are most important when determining where to get business funding. Because the best online lenders for you are out there! Today, we want to hear from our audience! Share your voice with us about your experiences with online lenders.