How to Get a Business Loan With Bad Credit

Video Transcript

"Okay. Today's topic is getting a loan with bad credit -- a business loan with bad credit. The thing is, with a business loan, it's hard enough to be successful with good credit and plenty of collateral. So the key to being successful with bad credit is...there's a couple ways you can go. The most important thing is the bank is going to want to put the risk anywhere but in their own hands, and so if you've displayed bad credit in the past -- and I'm sure, turned that all around -- what you're going to have to do is convince them that their risk in you and/or a joint applicant is worthy. And so you're going to have to find somebody who will co-sign, that has good credit, obviously, or...and/or collateralize it fully with real estate or other assets. And you are more likely to incur higher interest rates and less favorable terms because of that bad credit. It's still possible out there. Don't be discouraged, but it is more difficult, especially in the climate of the financial market these days."