3 Situations When a Bad Credit Business Loan Makes Good Sense

The finances of operating a small business can be a nightmare. Regardless of how well the business is faring overall, it can feel like you’re constantly on the brink of financial ruin. Fortunately, there are a few finance solutions that have been designed specifically for businesses that operate on this scale.

In this post, we’re going to look at three specific scenarios in which a bad credit business loan may be just what it takes to give your company the strong financial footing it needs to survive:

1. You’re Planning to Launch a Franchise
Buying a franchise is a great way to start a small business and start generating revenue. However, getting that franchise up and running will require some funds up front. If you’re serious about starting a business like this but lack the funds to get it in motion, an unsecured business loan may be just the thing.

You may be surprised to learn how affordable starting a business like this can be. Some franchises are available for as little as $20,000 (sometimes even less). Of course, you can spend a great deal more than that – depending on the business. But with upwards of $500,000 cash available from Discovery Credit, it’s safe to say that you have options to explore.

2. Your Business Needs Working Capital to Stay Profitable.
Sometimes, the only thing holding you back from maintaining or even advancing your business prospects is poor cash flow. You have the facilities, staff and inventory needed to fill orders. What you lack is the working capital needed to keep those operations in motion. Between rent, payroll, utilities and any other miscellaneous expenditures – simply keeping the lights on can be a challenge.


It’s not that the company is bankrupt. It’s simply strapped for cash in the near-term. In cases like this, a bad credit business loan can supply you with the capital needed to keep operations turning over. This, in turn, is going to generate new revenue – to the extent that the money you borrow now is going to be paid (with plenty of extra profit) in the near future. If you’re confident this is the case, then a bad credit loan makes good sense.

3. Your Business Needs to Purchase Equipment Needed to Ramp Up Operations.
Maybe your company has the cash flow needed to keep operations in motion, but not enough to take the business to the next level. If a cash injection now would enable you to purchase much-needed equipment and start turning over larger revenue, then a bad credit business loan may be just what you’re looking for.

Of course, if you didn’t get a loan to finance the new equipment, cash flow issues would almost certainly develop. Taking out a loan allows you to sidestep any cash flow problems, as no major down payments are needed to get that equipment operating.

If you’re in need of fast financial assistance with your small business, Discovery Credit can assist. Contact us now to find out how much working capital you can borrow.

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