BUSINESS LOANS FAQ

What is a Business Loan?

A business loan helps you start a business.

Which is better, a line of credit or a business loan?

In a new business your requirements are special and high. Under such circumstances a line of credit is the best option because under this type of loan you are free to pay back loan whenever you feel comfortable. There is no time limit.

Your payment on a Line of Credit will vary between 1% and 2% of the outstanding balance. For example, if you borrow $1,000,000 your monthly payment would be between $1,000 and $2,000 with a large part of this going towards your principal.

Terms also vary between 24 to 84 months.

If I don’t have any money to put into a start-up business, can I still get a loan?

There are some credit-based loans that do not require a capital injection, or if so, a very small one (e.g. 10%). These are generally under $50,000.

How can I obtain business credit without using personal guarantees?

It sounds a bit circular, but to get credit in the name of the business, you need to have an independently creditable (or credit worthy) business. That means, among other things, that it isn't just an alias of the owner and would survive even if he wasn't involved. It has assets and customers that would continue to want to use it whether the owner was involved or not. The type of business that would interest investors or other people to want to own it.

What will happen when my application for Business Loans is approved?

You can analyze whether the rates and terms of the loan are suitable for you and your business.

Is my information secure?

Yes, of course. Your information and details are totally protected by us. We use 256 bit encryption for it. You can also check the secure logo on the application pages on our website. We are equally concerned of your private information and work hard to protect it.

If I pay off my loan or line of credit early, is there a pre-payment penalty?

NO! Not as such. Our business loans only lend you money from those lenders who do not stick you with a pre-payment penalty. Badcredit.com is here to reduce your tensions and not to add more to it. You may continue with the loan as long as it is convenient to you. You can pay it at any extended time after consulting with your lender.