Finding Business Loans With A Bad Credit Score
The Bad Credit Issue
Finding a lender who is willing to loan you money when you have bad credit can be a challenge. Credit is something that most traditional lenders take into consideration when considering you for a loan. Getting business loans with bad credit score is completely different. This is due to the fact that most traditional lenders do not offer their loan products to those without good credit. If they do offer you a loan product, they will do so at a much higher interest rate than a borrower with good credit.
Another consideration from the banks will be how stable your business model is. Have you been in business for a number of years? Banks are typically looking to lend to businesses who have been in business for at least two years. If you are looking for business loans with bad credit score they will often look for a much stronger business history.
What You Need For Business Loans With Bad Credit Score
Banks are going to ask to review your financial statements over the last few years in order to consider you for a loan. If your books are not up to date or accurate, the bank will easily find a way to deny you for the funding.
Another expectation of a bank is going to be collateral to put up against the loan. For a business, this can often be personal collateral meaning your personal property such as a home or boat. Or it can often mean something that is in the business’ name like a building or a piece of machinery.
If you are looking to use a bank for business loans with bad credit score, it will be extremely difficult to get approved. Meeting bank requirements can seem impossible and frustrating. In addition, even if you secure a loan via this route, there are still several potential issues, but the biggest one, by far, is interest rates. The business loans available for those with bad credit all carry, on average, a far higher interest rate. This means that in your attempts to deal with your bad credit issues, you may end up digging yourself into a bigger financial hole. This conundrum has led to a rise in alternative funding opportunities, like merchant cash advances.
Getting Funding With Bad Credit
eBusiness Funding helps businesses that may struggle with traditional lenders. To do this, we provide merchant cash advances. These are accessible to a wider spread of businesses 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. As a result, so we place no limit 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 a set part 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? All it takes to begin is filling out a simple contact form. We’ll be waiting, and are looking forward to helping your business get the funding support it needs.