How to Get Bad Credit Business Loans
Credit scores have become a way of life today, so if you are an entrepreneur with a low rating, you may need to know how to get bad credit business loans. Having a bad credit score can affect you for years, causing frustration, headaches and powerlessness when it comes to getting a loan.
As a small business owner, your bad credit can bring your company to its knees if you are not able to obtain a business loan to get the fast cash you need to grow your business because of it. Fortunately, there is help available for small business owners with bad credit.
If You Have Bad Credit, Where Can You Go to Get a Business Loan?
It used to be that people were defined by how hard you worked. Then, decisions were made based on how much education you have. Now, it seems, you can have everything going for you, but if you don’t have good credit, the doors still slam in your face.
If you are a small business owner trying to get a loan with bad credit, chances are this has happened quite often. It can be difficult to find lenders willing to work with you.
Most traditional banks will not be able to help you. When you have a bad credit score, the best you can hope for from a bank is a home equity line of credit, where you put your own home up for collateral to cover the cost of the loan. The problem with this is, if you have any trouble repaying the loan, you could lose both your house and your business.
You may also be able to borrow money from friends, relatives or private investors. However, this decision could cost you a valuable relationship or even a percentage of your company.
Are There Other Ways to Get Instant Business Funding When You Have Bad Credit?
Just because you have a bad credit score does not mean you are a bad person, but unfortunately, that’s how some companies make you feel when you are seeking help with a fast business loan. Thankfully, not all lenders are created equal.
Your best option is to choose a cash advance company, like Financing Solutions (www.fundmypayroll.com). This is a simple way to get the short term business funding you need to make payroll, pay bills, purchase equipment or inventory, or build working capital to grow your business. They are willing to look beyond your credit score and consider additional factors, such as whether you have been working to rebuild your credit.
The process is uncomplicated and easy. You sell some or all of your account receivables and get fast cash based on a percentage of their value. This assistance comes in handy when you are facing a temporary cash shortage, such as an account receivable gap where you need cash now but have to wait 30, 60 or 90 days for clients to pay you. The money can be repaid when your cash flow is stronger, usually in a few weeks or months. Best of all, you can be approved the same day and receive your cash in less than 48 hours.
Some sources for fast business financing can make your situation worse by having a negative impact on your credit score just by using them. Financing Solutions is different because receiving help from them does not affect you credit score. Additionally, you can use them even if you have been approved for quick business financing from another lending institution but you are still waiting for your money.
The Importance of Business Loans
Studies have shown that the reason most small businesses don’t last past their fifth anniversary is that they run out of cash. Access to fast cash is the biggest obstacle separating a successful business from a failed one and business loans play a huge part.
There are many times when you may be presented with a chance to expand your business and this takes cash. You might need new office space, money to hire additional staff or extra supplies to fill orders. Most small businesses do not have enough cash on hand to handle such items, which is where immediate business loans come in.
When you need access to cash now, you owe it to yourself to check out Financing Solutions. Don’t wait, because that great opportunity could be right around the corner.