If you own a business and you need to take a loan for any reason, Fortunately, thanks to innovative lenders and unique products, this is not the case at all.
Get a Business Loan with Bad Credit
Imagine a scenario in which you have owned a business for five years, and that business has grown substantially each year since it was opened. Now you want to open a second location in another city. You go to the bank, talk to a loan officer, and apply for a new loan. However, if you have a score of less than 600 to 650, you will probably be declined. Big banks often look at your credit score first and foremost, and if it is too low, the overall success of your business – and your sales – makes absolutely no difference.
You Have Options
Fortunately, if your bank turns you down for a business loan for bad credit, all is not lost. There is a lender (ACFA Cashflow) who can help you. In fact, you have three options, even with bad credit.
Merchant Advance – A merchant advance is your company’s credit card. This gives you much more flexibility in the long run. There is only one time and one of your daily sales.
Private Term Loan – A private term loan is an alternative to a business loan from a bank that is based almost solely on your credit. With this type of loan, you get the same money, but you pay with a fixed daily payment. This lessens the risk for the lender, which means that it does not weigh heavily on the lender’s decision.
Business Equity Line of Credit – Finally, this is another product that you can get with less-than-perfect credit, especially if you have a lot of equity in your business. It can be risky since you are having a large stake in your company on the line for collateral, but it is also a great way to get a good deal of money without perfect credit.
Rebuild Your Credit
When it comes to a business term loan, not only are the qualifications easy to meet, but you can use this product to help rebuild your credit over time. The future is better, you will become better. These loans are surprisingly affordable, as well.
Every business needs access to credit in one shape or form, so do not let bad credit hold you back. If you need money to expand, purchase equipment, or simply stay afloat during a rough period of time, consider a cash advance, a business term loan or a business line of credit.