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 with this you are free to pay back the borrowed money whenever you feel comfortable. There is no time limit.
Your payment on a line of credit will vary between 1 and 2 percent 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 from 24 to 84 months.
If I don’t have any money to put into a startup 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 percent). These are generally loans for 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 creditworthy) business. That means, among other things, that it isn’t just an alias of the owner and would survive even if that person wasn’t involved. It has assets and customers that would continue to want to use it whether the owner was involved or not. Additionally, it is the type of business that would interest investors or that other people might be interested in owning.
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 as concerned with safeguarding your private information as you are, and therefore we work hard to protect it.
If I pay off my loan or line of credit early, is there a prepayment penalty?
No. The business loan lenders whom we work with never stick customers with prepayment penalties. BadCredit.com is here to reduce your anxiety and not to add to it. You may continue with the loan as long as it is convenient to you. You can pay it at any time after consulting with your lender.