Internet-based businesses have taken the lead in today’s business environment. New market players are filing the platform. Other than the competition that comes along with this increased number of players in the 21st century, there is the problem of bottom-line.
The mainstream brick-and-mortar retails, startups, electronic merchants and even established businesses that are seeking to grow through the internet are facing difficulties securing lends from banks and other traditional lenders.
It is much worse for those companies that have experienced some bankruptcy and are carrying a low credit score. Creditors are less willing to lend money to such businesses out of fear that they may miss payments. It is based on these considerations that the First American Merchant has come out to offer bad a credit business loan allocation to save these kinds of high-risk merchants.
The Type of Businesses That Qualify
The bad credit business loans are there to help out all businesses that are deemed high risk and face difficulty obtaining finances from other traditional lenders. Banks typically consider most small businesses to be high risk. They are therefore less willing to offer loans to any of these businesses for the fears associated with bad credit.
Most ‘cash-intensive’ ventures like convenience stores, retail outlets and restaurants all may face quite a hard time trying to obtain loans from banks and other mainstream lenders. Professional corporations that include lawyers, accountants and dentists are not any safer. They are all deemed high risk by the banks.
Startups face difficulties trying to secure the needed finances since they have a relatively short credit history. They often have limited assets and banks typically presume them as being high risk as well. The banks are therefore mostly reluctant to offer credit services to these starting businesses.
Established businesses that are experiencing up-down cycles or seasonal fluctuations are labeled as high risk too.
The First American Merchant works with all these businesses without discriminating. Even businesses that have just emerged from bankruptcy or those that have less than perfect credit histories have access to a bad credit business loan at FAM.Get Started Now