The options for a business owner when they have bad credit and are looking for fast bad credit business financing are extremely limited. Whether they own real estate or have other collateral doesn’t matter if they have a low FICO. A bank will not finance a business owner if they have bad credit, a tax lien, or show a bankruptcy. Alternative lending sources are their only option to receive fast bad credit business financing.
Alternative lending choices in this regard will come in 4 different forms. Either a Factor, Asset Based, Merchant cash Advance, or unsecured business loan against receivables. A Factor will “seize” a businesses’ receivables and their accounts receivable department during the course of the loan. They will buy a portion of the future receivable and have the creditors pay them directly. They will take their cut of the receivables along with a flat interest charge and then pass on the remaining money to the business owner. a little intrusive but it works and thousands of businesses go this route. Asset based lending is exactly that, they lend against your assets and put liens on them so the business is putting up collateral. Also a bit intrusive but less so than factoring and less of a risk for the lender. Merchant Cash Advance or Business Cash Advance is when a lender buys a portion of the business’ future credit card receipts. The lender is paid by taking a portion of the daily credit card receipts prior to the business or merchant getting their money from the processor. This is a little less risky as well but defaults can happen easily. The lender will agree on a “hold back”percentage of each credit card processed. There is no term on this as the merchant can control how many transactions or how much the transactions will be daily so there is no term but the lender can predict as to how long it will take to be repaid. Finally there is the unsecured loan against future receivables. Same concept of a Merchant Cash Advance except credit card payments are not touched rather a daily fixed payment is taken from the merchant’s bank account based on past revenue volumes. All the above are ways a business can get fast bad credit business financing.
What all these have in common are they are not credit based loans. Fast bad credit business financing is attainable through these sources to help with capital infusions when needed. Approvals are in hours and funding in just days. There are numerous lenders out there willing to finance. To see about fast bad credit business financing click here.