Best Loan Companies for Bad Credit
What is the best payday loan company for bad credit? The credit system is found in every sound financial and finance system. In fact, the credit system measures the level of advancement and development of the financial system of a country.
Since the credit system has developed to the point where we have it today it has become a measure of the financial health of an individual and a business.
The central measure of this financial health is the credit score. The credit score is used to measure the likelihood that a borrower will repay the money to the lender. Banks and other financial institutions use the credit score to determine if it is cheap or expensive to lend to a potential borrower.
The distinction in credit score is made by using the phrase good credit and bad credit. Good credit is used to refer to a financially healthy credit score or borrower while bad credit is used to refer to a potentially risky borrower.
This is means that it is best to maintain a healthy credit score. People and businesses with good credit score get easy access to credit or borrowing while the reverse is the case for people with low credit scores.
With a bad credit score, it becomes extremely difficult to get credit, especially cheap credit. This happens because lenders do not want to run a high risk of losing their money.
Nevertheless, there are still lenders and loan companies who are willing to take the risk, that is, of lending to people or businesses with bad credit scores.
A number of loan companies do provide this service. We are going to discuss the loan companies which are best for bad credit.
Here are the best loan companies for bad credit.
Credibly is a loan company that offers expensive loans. This company makes its loans based on expected credit card receipts. This loan company is best for businesses.
Credibly is best for you if you need a loan to solve a short cash flow problem.
This loan company is also best for you for the ease of loan application which it offers. It is also easy to manage your loan on the Credibly platform.
To qualify for the company’s loan, the business must have at least the sum $15,000 (U.S. dollar) in monthly revenue. The company must also have lasted at least six months in business.
The company grants a maximum loan of $250,000 (U.S. dollar) and the loan is expected to be repaid for a period of between 4 to 18 months with a daily repayment cycle.
To apply for the loan, the borrower is expected to fill out the application form on the company’s website. When approved, the loan is funded in between 2 to 5 days. The cost of the loan is at an annual percentage rate (APR) of 80% to 120%.
OnDeck provides business loans for of up to $500,000 (U.S. dollar). OnDeck is best for you if you need a quick loan of up to $100,000 (U.S. dollar).
To qualify for the company’s loan, you are required to have a credit score of at least 500 points. Your business must also have revenue of at least $100,000 (U.S. dollar) and you must have been in business for at least one year.
The repayment terms for an OnDeck loan is between 3 months to 3 years.
The company offers a daily or weekly repayment cycle. To apply for the company’s loan, you are required to fill out an online application. When approved, the borrower receives funding in usually one day.
OnDeck’s loan comes at an annual percentage rate (APR) of 30% to 50%.
Fundbox basically offers a line of credit for businesses. The business can draw from the fund whenever it needs cash without having to reapply every time.
Fundbox is the best loan company for your bad credit if you can anticipate your cash needs and need a reliable line of credit.
Fundbox is also best for you if you do not want to pay any prepayment penalties.
To qualify for a line of credit from Fundbox, you must have been in business for at least 6 months. The company has no credit score requirement and does no credit check. There is also no minimum revenue requirement.
The company advances a maximum loan amount of $100,000 (U.S. dollar).
A Fundbox line of credit requires a weekly repayment. The loan has a repayment term of 12 weeks to 24 weeks.
To apply, the applicant is required to fill out an application form online. If approved the loan is funded in between 1 to 3 business days.
The cost of a Fundbox loan is at an annual percentage rate (APR) of 38% to 54%.
When it comes to providing loans for people and businesses with bad credit, there is no best loan company. The best loan company would be the company that serves and suits your situation the most.
We have been able to provide you with information on three loan companies that make loans for small businesses with bad credit. Ensure to pick the loan company that serves your unique situation the best.