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How to Obtain a Business Loan With Debt

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    • 1). Pay your bills on time. If you have debt--no matter what form it's in--you have to pay a monthly bill. These payments become part of your business credit report and potential lenders will be able to see whether or not you pay on time. If they see that you consistently pay your bills on time, you become a lot more attractive. In addition, paying your bills on time means that you'll have a good credit score.

    • 2). Create some cash flow for your business. If your business is regularly earning money, lenders will see that you have the means to repay the loan. Your cash flow should be enough to cover your current debts and make payments on the new debt.

    • 3). Gather your financial statements. Banks will want to see this when you apply. This should include profit statements showing that you have cash flow and it should also include the statements for your debts, displaying how much you owe and other terms of your loan.

    • 4). Apply for a loan. Fill out the formal application at the bank and submit your financial documents along with it. Be honest about the debts that you owe, but also confident that you are able to handle new debt as well.

    • 5). Consider creative funding sources. If the bank turns you down, you are not out of options. Some companies offer unsecured loans to business owners who have debt. In return, they keep a percentage of your credit card payments. The interest rates are higher than on a traditional loan, but you can use this as a last resort.

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