Having bad credit is one of the main reasons why small business owners are so often denied small business loans. This is unfortunate, and at times can seem unfair.
From a business owner’s point of view, one’s personal financial history and his/her business are two completely different and separate entities. And an inability to make timely credit payments in the past is not a harbinger of a business that will certainly flop, and hence, does not render a person incapable of developing an amazing business idea and producing a profiting business.
But from the bank’s perspective, lending is a very risky venture, and the assurance of getting money back is very important. A bank can not predict how well a business will do, leaving the bank to rely solely on the business owner for loan repayment. A borrower’s credit score helps banks to determine whether or not the owner is likely to return the money lent in a timely matter.
Faced with this predicament, many business owners seek out a business loan that can be attained even with bad credit. But quite often, this type of loan has even tighter and higher restrictions in other areas, requiring extensive collateral, high interest, etc.
When this happens, it may be time to look past banks and other traditionally used lending institutions.
Business cash advance lenders can offer a business cash advance to business owners even if they have bad credit and no collateral.
A business cash advance is ideal for merchants who process at least $2,500 in monthly credit card sales and need money to put into their businesses.
If the following points describe you, you could probably use a bad credit business loan through a business cash advance.
1. You Own a Merchant Business
A business cash advance can benefit a merchant business owner in so many ways. Working capital is one of the key ingredients of a successful business. Business cash advances can be used in one or more of the many ways that can eventually improve your business. Business cash advances are perfect for purchasing inventory, expanding businesses, or simply keeping a business on its feet.
2. Your Credit Score Isn’t Great
A business cash advance is probably one of the best options for a business owner whose credit is not the best, mainly because approval is not based on the applicant’s credit score. Since the repayment of a business cash advance is deducted as a small percentage from the business’ credit card sales, the applicant’s credit history is almost irrelevant. Business cash advance lenders rely on the business rather than the lender to get their money back.
3. You Have Little to No Collateral
There is no collateral required to receive a business cash advance. That means you can get the money you need without having the stress of worrying about your property. A business cash advance keeps your personal life and your business life separate. Therefore, your family won’t have to suffer because you’ve lost your house due to inability to repay a loan. A business cash advance also takes the stress of having to remember to make monthly loan payments off of the borrower, and is a virtually stress-free process from beginning to end.
4. You’ve Tried Other Options to No Avail
If you are one of the many business owners who have attempted to receive financing for their businesses only to be turned down time and time again for one reason or another, a business cash advance lender should be your next and final stop. After so many “No’s” it’s time to hear a “Yes” and get the money that your business has always deserved.
California – the state in which gas prices rank 6th highest in the nation; the state that in the first quarter of 2008 held second place in the battle for the highest cost of living, and still, the state that is responsible for 13 percent of the Gross Domestic Product.
With over 3 million small businesses, employing over half of the state’s non-farm labor force, running a small business in California can be very profitable. But based on these statistics, and the fact that many business owners with bad credit can not secure approval for a small business loan, acquiring the initial funds to sow into a small business can be a challenge.
Fortunately, getting a bad credit business loan in California is not a difficult process. California small business owners can use a business cash advance to finance their business endeavors even in the face of less-than-perfect credit scores.
A business cash advance is a type of business loan that is specifically formulated to provide business owners who have lower credit scores with an opportunity to acquire business financing. If going the bank-route is not an option for you, then a business cash advance is one of the best alternatives.
Business cash advance companies can usually lend as little as $5,000 for small business financing needs, as much as $500,000 for bigger business ventures, and anywhere in between, for business owners that meet a short list of requirements.
The most important qualifying factor for eligibility to receive a business cash advance is – owning a business that regularly processes credit card transactions. For the most part, if you have owned a business that processes a minimum of $2,500 in monthly credit card sales for at least four months, you can receive a business cash advance. The dollar amount that you can receive in your business cash advance varies directly with the dollar amount of monthly credit card sales your business processes.
Unlike many other business loans, a business cash advance is not repaid via fixed monthly payments. Your business cash advance payments are made when customers make credit card purchases. Prior to the funding of a business cash advance, calculations are made, and business cash advance lenders will inform the borrower of the percentage of daily credit card sales that will go towards repayment of the business cash advance.
This percentage of daily credit card sales is then deducted until the business cash advance is completely repaid. This percentage never changes, allowing your payments to also vary directly with your credit card sales. In other words, you only make payments when you make money.
There are no limits to what a business cash advance can be used for. You can use your business cash advance for the same things that a traditional bank business loan can be used for, the only difference is, with a business cash advance, you are not required to present the lender with a thorough explanation of what you plan to do with the money, in fact, no explanation is required.
As a California small business owner, don’t let your credit score get in the way of the advancement of your business. Make your choice from one of the many U. S. business cash advance lenders and get your business cash advance today.