Suppose that a person is in dire need of a small business loan (complicated surrounding circumstances involving politics eliminate other options).

They have the following assets:

  • 6 year old LLC with EIN that needs to be renewed if they're going to use it - this was used as a banner for several side projects with co-workers but no income was ever generated / filed
  • A newly created Series and Close LLC with (pending) EIN and no history
  • Mediocre personal credit
  • Home with some equity, but too little equity for a HELOC with a major bank

Is there any chance of this person getting a small business loan and, if they are to make an attempt, which would be the best (highest probability of acceptance):

  • Traditional banks' small business loans
  • Newer products like Kabbage, crowd-funded loans, etc.
  • Business credit cards
  • Something else?

The small business is essentially an expert in a given field doing a mix of part-time B2B contracts, paid online educational content, and small supplementary activities. The need for the loan is for bootstrapping operations and relocation after exiting a corporate management career.

1 Answer 1


Your best option with an underperforming credit evaluation is to give up equity in your business in exchange for your loan amount. While this may not be preferable, your credit standing is less of an issue and the assets entitled to the investor you sought will be considered as collateral. Your obstacle is finding an investor willing to take an equity stake in your company. However, it's still more likely than getting lines of credit with minimal credit standing.

Hope you get everything resolved soon!

  • Thanks. I think he did that to the extent of about $6K, but was trying to scrape more elsewhere. The only real assets were crypto, since it's mostly consulting / programming.
    – Hack-R
    Jun 24, 2019 at 5:57

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