Business Financing With Bad Credit

It’s no secret that bad credit is a major obstacle to obtaining a business loan. Business financing for bad credit can be extremely hard to find as restrictions grow. Don’t get discouraged, though. Modern research shows that there are more funding opportunities out there, some that are under the radar. Don’t think that the high-interest rate loans offered to many with bad credit are all there is. Let’s take a moment to break down what you can use when you have difficult troubles.

The first option may be a traditional bank loan, but what you may favor may be the hardest to get. It’s likely you’ll need to provide collateral for approval of a bank loan.  In addition, you’re likely to have to deal with high interest on the loan. Banks aren’t preferential to businesses with bad credit, and will charge a higher interest rate to cover the higher risk. For some, this still may be the best option out there.  But don’t let a lack of knowledge put you in a corner. Read on for some alternatives.

Alternatives For Bad Credit

Business Credit Cards

If you can secure a credit card for your business, making repayments on time is a good way of rebuilding bad credit.  Note, though, those lending criteria and interest rates are similar to that of a traditional loan. This makes it difficult for businesses with bad credit to gain approval.

Microloans

A microloan is like a traditional loan but from a smaller lender, such as a credit union. It might be slightly easier to obtain a microloan but you generally receive smaller amounts. Not only will you have to deal with a small loan, you’ll also still experience a high-interest rate due to your bad credit.

Home Equity Line Of Credit

This is a risky financial strategy where the bank uses your home as collateral for a loan. This only applies to homeowners and may exclude some business owners. Providing collateral doesn’t necessarily mean you’ll get a generous APR, it just provides some security to the bank.

There are other options out there for business financing, but the further you go away into the alternatives, the further risk you incur in different ways. Securing potential loans with collateral like equipment, homes, cars, or other similar items leave your personal life at risk should your business fail. Having bad credit may close off some areas to you, but don’t think you’re doomed to a bad situation. Merchant cash advances are one such option.

Another Business Financing Choice

eBusiness Funding helps businesses that may struggle with traditional lenders. We also  help those who may be looking for business financing for bad credit but are wary of some of the risks out there. To do this, we provide merchant cash advances that more businesses can use than bank loans or private lenders. 95% of businesses that meet our simple requirements qualify for funding. All you need is to be in business for at least six months, with over $10,000 in monthly revenue. With us, it’s not about past credit history or collateral, but about your business’s potential.

It’s important to us that you use the funds we offer in the most helpful way possible, so we place no restrictions on how you spend our advances. Payroll, expansion, repairs, spend on what you need! We also get you your funds fast, sometimes as soon as 72 hours after you first apply. Repayment is also very simple. Rather than large monthly payments, we take an established percentage of your future sales. This is set up by our skilled consultants. This percentage stays the same, so if business slows down, you pay less.

Interested? If you’re ready to begin, all you need to do to start is fill out this simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.