You probably aren’t used to seeing the words business loan and bad credit in the same sentence, unless of course they are followed by the word DENIED.
But for small business owners whose credit scores have constantly gotten in the way of securing funds for their businesses, there is good news and there is bad news. The bad news is, getting a loan from a bank with a less-than-outstanding credit score is pretty much out of the question for the time being. The good news; the funds are out there, you’ve just got to find them.
Fortunately, for the small business owner who’s been struggling to find business funds and is reading this article, I have done half of the work for you, and am now presenting you with a method of business financing that typically only requires borrowers to have credit scores of at least 550. This method is known as the business cash advance.
“Lenders look at the risk involved in making your loan and that is going to be determined according to your credit history. Unfortunately individuals with a history of bad credit are more likely to have late payment and/or to default entirely,” as stated on a website focused on business financing. But the business cash advance works differently. Business cash advance lenders don’t focus merely on the business owner’s ability to repay a loan. They look at the business itself and consider the amount of credit card sales that the business processes in a month. This number is important because it helps the lender determine how much money they can actually lend to a particular borrower in order not to hurt the borrower’s business.
Borrowers can receive between $5,000 and $500,000 dollars for their businesses with the business cash advance. The business cash advance keeps business owners from having to rule out business financing just because they don’t have excellent credit.
By: Gaston Castro