Bad credit hinders merchants with many things, from merchant accounts to financing, and sometimes even licensing. While licensing requirements cannot be helped, merchant accounts and financing are available for those with bad credit. The latter tends to be the hardest to find, and most of the time the standby bank loan is the worst choice for a merchant. Luckily for US-based merchants, it is possible to get a cash advance with bad credit – if you know where to look.

Bank loans are the worst option for bad credit merchants, and not because of the high interest rate. Bank loans and other traditional loans must be repaid almost immediately, regardless of your business standings. Even if your business is losing money, or closed, you still must repay the loan, otherwise you risk losing your collateral. A better alternative is the cash advance, which may sound like something from a “payday loan” company. This is false. With a merchant cash advance, you are receiving an advance on your sales, and payments are reasonable.

One of the biggest pluses with a merchant cash advance is the payment structure. While each plan will vary depending upon the company, the basic setup requires that a certain percentage be taken from the merchant account at the time of closure daily. This helps you avoid large payments monthly, and it leaves you free to worry about things other than your loan due date. Another plus: With providers like FAM, you can be accepted with a credit score below 500. This is something that is nearly impossible with a bank loan, and it can help recession-riddled merchants break to a happier future.

Many merchants will need additional funding at some point, and even though our elders turned to their banks to get a loan, this isn’t the best way for the majority of 21st Century businesses to operate. There are better ways, and one of the best for any merchant is the merchant cash advance. For merchants with good credit, bad credit, or are just starting out, a merchant cash advance is often the best choice for business funding in the USA.

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