Is Bad Credit Business Funding Real?

Have you ever wondered if your credit will hurt you in the long run? Sadly, as a business owner, having bad credit can leave you with limited options for getting bank financing. Due to increased regulations, the lending market is tighter than ever. Banks are only loaning to the most qualified lenders. Having bad credit can be a huge red flag for financial institutions. It can also be a way to get turned down immediately. If you have bad credit you may be asking, “Is there an option for bad credit business funding or what can I do?” The answer is yes – there are options out there for business owners with less than ideal credit.

“What options do I have for bad credit business funding?”

Payday Loans

Depending on the payday lender you work with there are several options for you. This option allows you to write a check and give it to your borrower. The borrower will advance you funds and agree not to cash the check until the agreed upon date. This will give you business immediate access to funds.

It is important to keep in mind that when you borrow from a payday lender to only borrow what you need. Typically, the payback schedule is based on when your payroll cycle runs. Lenders will often offer you the option of renewing your loan which is similar to refinancing a bank loan. However, these come with high fees and can really cost you in the long run.

Factoring

Allows small businesses to take advantage of their unpaid invoices. This option gives companies the ability to use their invoices as collateral to get funding quickly. Small businesses take back the timing of when they get paid from their slow clients.

Start-Ups

There are a variety of start-ups that look at things other than your credit score when it comes to financing. Companies like Fundbox and OnDeck are out there. OnDeck offers loans and lines of credit similar to a bank without the emphasis on your credit score. Fundbox focuses on invoice financing. This is similar to factoring in a number of ways.

Merchant Cash Advance

A merchant cash advance is an option that looks at where your business has the potential to go. We would rather look towards the future of your business than focus on your past. We don’t feel that your credit history should dictate if you are approved or denied for funding because it is just that, history. We want to focus on helping you grow your business.

Receiving a merchant cash advance is simple. As long as you meet our minimum qualifications.

Have been in business for six months or longer
Generate at least $10,000 a month in revenue

The application process is just as simple as our qualifications. All you need to do is apply online through our simple form. After we review your application, we will let you know how much you are approved for. The approval amount can range from $5,000 and $500,000. Just three days after you apply, we will deposit the cash into your bank account. You can be spending the money that same day.

As you consider the options that are available to you if you have bad credit and are looking for bad credit business financing, consider your business model. All of the options we have discussed have many benefits but are not without their risks. Determining what is right for your business is important. Give us a call today and we can help you determine what option may be right for you.