Borrowers with bad credit who are looking for commercial loans face a difficult process, costly loan options and many "no" as well. Even though it is a difficult situation, borrowers should try not to get discouraged and remain patient as their solution just may be around the corner.
What are the potential commercial loan options for borrowers with bad credit? If the borrower works their business from the subject property then as one of the best programs is SBA commercial loans. This often comes as a surprise to many who have shopped for SBA loans.
The thing to keep in mind is that the SBA dictates no credit score type restrictions. There are lenders themselves who establish credit score minimums. So borrowers must find the SBA lenders that are having flexibility with this component. There are many companies like one stop funding solutions that provide best sba commercial loans.
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There are two types of SBA loans, the 504 and SBA 7a. The 504 is for purchases aligned only and the minimum loan amount is often $ 2,000,000. Borrowers with bad credit have got a harder time approved for this loan.
The 7a SBA loan will often be more focused on borrowers with credit problems. The program will often go up to 85% or even 90% loan to value in some cases. The typical loan amount will range from $ 400,000.