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If your credit has been damaged and you want to start a business—you can still get a small-business loan with bad credit.

The biggest reason lenders turn down small-business applications is the borrower’s credit. Banks consider bad credit anything below a 620 FICO score. Because of their past, applicants with bad credit are considered a high risk for defaulting on loans. Have no fear—there are still options out there for entrepreneurs that need a small-business loan.


There are lenders out there that will work with you to get a small-business loan with bad credit. There are lenders that will provide options for borrowers with shaky credit. Typically, they require a FICO score of at least 500. And, believe it or not, there are lenders that have no minimum score requirement. These lenders will look at your business and determine if it is strong enough to be successful thereby giving them confidence that you will repay the loan.

A borrower with bad credit must realize that the lower their credit score is the bigger chance they have in having a higher APR—interest rate and fees that accrue on the loan. A borrower with a low FICO score, no collateral and a brand new business should look toward the option of business credit cards and secured personal credit cards. If you want to manage your cash flow and working capital, a line of credit will be your best bet.

Hard money lenders can help with small-business loans

If you need a small-business loan—even with poor credit, but you have collateral, a hard money lender can work with you. Hard money loans are collateral-backed loans that can give easy access to small-business owners. They are secured by real estate. Hard money lenders are less concerned with a borrower’s credit and more concerned with their hard assets. If a borrower defaults on a loan the lender can foreclose on their property.

Hard money loans offer an execution that is fast. A borrower can be approved within 24 hours and have funds in as little as 10 days. They also don’t have the regulations that traditional banks do. While a traditional bank must adhere to state and federal regulations, a hard money lender creates their own regulations. These lenders still have an underwriting criteria; they are just more lenient.

Why a hard money small-business loan may be for you

If you are an entrepreneur with a vision and you have collateral, but unfortunately your credit is damaged a hard money small-business loan may be the best option. Along with speedier approval and closing time, hard money lenders work with each borrower individually. They have more leeway with underwriting and the repayment schedule. All in all a hard money lender can be more flexible than a traditional bank loan. These private lenders are entrepreneurs themselves and want to help others with that same entrepreneurial spirit.

                                                                                                                                       Dennis Dahlber Broker Ri CEO Level 4 Funding LLC

Dennis Dahlberg


Level 4 Funding LLC

Hard Money Lender

Hard Money Loans

Hard Money Loan

Arizona Tel:  (623) 582-4444

Texas Tel:      (512) 516-1177

Dennis Dahlberg Broker/RI/CEO

NMLS 1057378 | AZMB 0923961 | MLO 1057378

22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027

111 Congress Ave | Austin | Texas | 78701

About:  Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.

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