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In a recent article I talked about bad credit small business loans for women. In the past, women entrepreneurs have often been short-changed when it came to business loans. Especially if your business had bad credit. But thankfully, times have changed. So in that article, I tried to put the negatives to rest. And focus on the positive — bad credit doesn’t mean no credit. Even if you’re a woman.In this article, I want to expand on how you can go about getting the small business loans you need. If you take the steps I recommend, you’ll be able to fund your business operations and rebuild your business credit at the same time.

First of all, I want you to understand this important fact. It’s not unusual for small businesses to develop credit problems, so you’re not alone. Sometimes the reasons are out of your control. Most often, though, bad credit stems from poor cash flow management. Erratic cash flow can make it tough to pay your bills on time. Let alone plan new-and-needed expenditures.

So take heart and keep reading. We’ll talk later about how to improve your business finances. Meanwhile, here’s how you can get small business loans now, despite your bad credit.


I find that many small business owners really don’t know much about working capital loans. What they are, or when to use them. Knowing your business “needs money” isn’t enough. Before you can apply for any financing, you need to be clear on why you need the cash. And exactly how you plan to use it. The lender may not care. But borrowing for vague or random reasons will worsen your bad credit. Or put you out of business.

That said, you can use business loans for virtually anything:

  • Pay your bills when business is slow
  • Buy inventory now, even if money is tight
  • Handle emergency repairs or equipment replacement
  • Fund planned equipment upgrades
  • Launch a marketing campaign
  • Hire more people

Small business loans help you get past problems. And take advantage of new opportunities.


The Wall Street Journal says some small business owners put more effort into selecting a $300 laser printer than in selecting a bank. “Choosing a bank for your business involves more than opening an account at your personal bank or picking the branch office nearest your company. You need to understand what services you require and how much they cost.” Even with that, your regular business bank is probably not your best source of small business loans.

Why? Banks are businesses, too. Just like you, their goal is to make a profit. Most of the time, they see small business loans as too small and too risky. And since your business has bad credit, that’s a deal killer. Your bank may like you, but they can’t help you.

This is exactly why alternative lenders have become so popular. Finally, small business owners can find funding. Even if their business has bad credit. Even if they’re a woman, like you.


Thanks to alternative lenders, you have several ways to borrow other than traditional, long-term bank loans. But you can’t choose the best option until you know what those options are. And the pros and cons associated with each of them. Different types of funding work best for different types of businesses. And for different financial needs. You might consider:

  • Business line of credit
  • Business credit cards
  • Merchant cash advance
  • Accounts receivable financing
  • Short term business loans

Non-bank loans are often unsecured. This can be a big benefit for small businesses. You may not have significant business assets to use as collateral. And you want to avoid personal guarantees that put your personal assets at risk.


If you wanted to apply for a conventional bank loan – or an SBA-backed bank loan – you’d need a lot of paperwork. Having read this far, though, you know now that alternative loans are your best source of funding. Because of your bad credit. But it’s still a good idea to understand what it takes to get a traditional bank loan. Check out this SBA checklist. It’s daunting, isn’t it? But I suggest you print it out and keep it handy. Use it as a roadmap for the day when you do want to apply for a big bank loan.

Meantime, here’s happy news: you don’t need all that to get help from our lending experts here at UCS. No way. We know you need money now. You don’t have weeks to gather documents. Or months to wait for an answer. Everything we offer is geared toward easing the way for small business owners:

  • Simple, 3-step online application
  • Approval within 24 hours
  • Funding usually within 72 hours
  • No collateral or personal guarantee

And United Capital Source specializes in bad credit small business loans.


Successful entrepreneurs know they can’t do it all. And they know they aren’t good at everything. Knowing when to ask for help is the sign of a smart business manager. One way to get things under control is to seek help from the Small Business Administration. Their programs are free, funded by our tax dollars.

The SBA has almost 100 Women’s Business Centers around the country. They offer resources and workshops to sharpen your business skills. You can also confer privately with successful business veterans, through the SBA’s SCORE program.


United Capital Source can help you untangle the mysteries of small business loans with bad credit. We’ll match you with the best funding program to meet your current need(s). And we’ll stick with you as your business progresses, helping you put small business loans to work to grow your business. And erase your bad credit.

We will help you grow
your small business.

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