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In today’s challenging economy, one of the more difficult challenging problems facing new entrepreneurs is getting a business loan with bad credit. Many lenders have tightened up on their lending policies, making the prospect of low-interest, poor credit loans a door that closed several years ago. Luckily, if you have a good mind on your shoulders, you will find little difficulty with getting a business loan with bad credit.
One of the first places that you should look to when applying for a business loan is smaller banks and credit unions. These organizations are very useful for people that are just starting out, as they tend to offer lower interest rates and are more flexible when dealing with prospective customers that fall outside the rules and regulations of larger corporate banks like Bank of America, Wachovia and the like. You will be more likely to get someone to listen to your sales pitch, and more likely to get someone to get a business loan.
With bad credit, you should still have a very easy time getting a loan from a government source. SBA loans offer a wide variety of loan packages that make it easy for new businesses of many different demographics to get a piece of the American pie.
You may also want to consider P2P lending. Even though it sounds like a somewhat dangerous proposition, P2P remains an excellent way to get the financing that you need as a start-up business. P2P lending is also made easier by the fact that resources like virginmoney.com are widely available to the public, giving you the business and legal resources necessary to conduct your loan in a professional manner.
