Bad credit business loans are loans made to businesses owned by individuals with bad credit. How bad credit is defined is determined by the lender, but bad credit business loans are targeted at businesses or commercial enterprises owned by individuals whose credit scores and credit history would normally preclude them for qualifying for more traditional business loans. Because of the inherent risk in lending money to businesses owned by individuals with bad credit, a bad credit business loan will usually carry an above market interest rate. Additionally, a bad credit business loan, like many other forms of business loans, will usually require that the loan be secured by some or all of the assets of the business and personally guaranteed by the owners of the business. Sometimes a bad credit business loan may even require an additional guarantor who is more creditworthy than the business owner. In exchange for adding an additional guarantor to the loan a business owner with bad credit should negotiate for a lower interest rate since the additional guarantor mitigates the lender's risk factor. Bad credit business loans, including small business loans for bad credit, are available from a variety of sources, including commercial lenders and finance companies. Although a small business loan with bad credit is available from a variety of sources, lenders offering bad credit business loans tend to specialize in high risk lending and therefore, sources offering more traditional loans often do not offer bad credit small business loans to individuals with bad credit and vice versa.