Alternatives to High-Risk Business Loans

Get a line of credit up to $100,000. You don’t need perfect credit to apply.

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*This business loan calculator assumes a monthly interest rate of 3.3%. Your interest rate may vary based on your application information.

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Revolving credit up to $100,000


Next-business-day funding after approval

High-Risk Business Loans

High-risk business loans are typically small business loans that are offered to businesses with poor or little credit. Because business lenders will determine the risk of the loan on the business’s credit history, borrowers that are deemed “high-risk” generally receive smaller loan amounts at greater interest rates — if approved for anything at all. Many traditional lenders, such as banks, won’t lend to businesses with little or poor credit. That’s why a number of alternative lenders have been formed to fill serve this niche. If you’re a business owner who needs financing but has poor or little credit, you’ll need to learn what your best options for obtaining credit are.

Funding Options for Businesses with Less-Than-Perfect Credit

See if any of these options sound like they could be a fit for your business.

Secure the Loan with Collateral

Secure the Loan with Collateral: One of the more popular ways to obtain funding with less-than-perfect credit is to secure the loan with collateral. Businesses can offer inventory, equipment, auto titles and other forms of property as collateral, which they risk losing if they default on the loan.

Peer-to-Peer Lending

Peer-to-Peer Lending: The digital age has made it easier than ever for businesses to receive funding, and this has become one of the more popular options. Certain websites provide peer-to-peer lending, where a business owner can post the type of loan they are looking for and a “peer” lender (an individual person) can serve as an investor for the companies they like.

Get a Co-Signer

Get a Co-Signer: Banks and traditional lenders may still approve your business for funding if you have a person with good credit to guarantee your loan. If a friend or family member really believes in you and your business, they can co-sign the loan and take on the risk.

Credit Unions

Credit Unions: While credit unions do carry some of the characteristics of traditional lending, they can still be a good option for businesses with less-than-perfect credit. Because many credit unions serve industry-specific businesses, you may have an increased chance of approval through one if it serves your industry.

Alternative Lenders

Alternative Lenders: Online lenders like Headway Capital will often use non-traditional methods of reviewing applicants to determine a business owner’s creditworthiness. This means that even if your credit score is less-than-perfect, you still can be considered — and in some cases approved — for a loan.

A True Business Line of Credit from Headway Capital

If you feel like your business falls into the high-risk category, we’d like to be the judge of that for ourselves. At Headway Capital, we allow you to apply online within minutes, and we’ll quickly let you know if you are eligible. The best part is, you can do all of this without it affecting your credit score!

Headway Capital offers a flexible line of credit with no hidden fees. We offer credit limits up to $100,000, which can be used for any business expense. Once approved, all you have to do is log in to your account and request a draw whenever is necessary. After the draw is requested, you receive the funds in your bank account as soon as the next business day!

Have any more questions about Headway Capital? Check out our FAQ or Contact Us page. You can also give us a call at 866.698.8494. We’d be glad to help your business grow to greater heights.

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