What's the easiest business loan to get with bad credit?

One of the easiest business loans to get with bad credit is equipment financing because the equipment acts as collateral for the loan. This makes it less risky for the lender. Business owners with bad credit may also qualify for short-term financing like merchant cash advances or invoice factoring, because those options rely more on your sales or accounts receivables than your credit.

What can I do if my application is denied?

If you're denied a business loan, ask your lender why — your credit score might only be one of the reasons your application was rejected. Online lenders typically offer less support in this area, so it might be worth setting up a meeting with a microlender, community bank or small business development center . They can help you review your business's finances and see where your application can use some strengthening. Or consider a financing alternative.

Do lenders consider personal or business credit scores?

Lenders almost always check your personal credit score and rarely check your business credit score, even if you've set up an LLC to separate your personal and business finances. Loan providers usually look at the personal credit of all business owners — anyone with more than a 20% stake in the company. That's because most business loans require a personal guarantee from all owners, which means they're responsible for repayments if the business fails.