Bad credit can happen in business as well as in your personal life. While it is difficult to deal with, it is something that you must not use as an excuse, to not giving your business the opportunity it deserves.
Nevertheless, when the economy is still not great and you need to raise funds, having bad debt is not the ideal situation but it is not the end of the world, either.
It is possible to get a small business cash advance, even with bad credit, from merchants who specialise in businesses that are higher risk. Banks are turning away more businesses each day who are looking for a business loan or a cash advance.
They are sending them towards the merchant accounts who are willing to look at doing cash advances for many different businesses, even those with high-risk and bad credit.
A merchant account advance works differently to a business loan from the bank; the merchant provider gives you a cash advance on the sales that you have made over a period of months, even up to two years and they make a determination if you can have the advance and the rate that you need to pay it back.
Payments are a percentage of the days sales, this percentage can be anything form 10 -20% of the days takings paid by credit or debit card. What is important is to understand the difference. With a bank loan, you have the money paid into your bank account and you pay back a set amount each month. A merchant cash advance is paid back according to your daily sales and this often means that it is over a shorter time.
As long as you have a set amount of sales coming in and you are reaching the minimum turnover required, then it is going to be an important step to discuss the growth and development of your company with your merchant account provider.
Therefore, even if you have bad credit it is possible to secure a merchant cash advance to enable your business to grow even in a very difficult economic climate.
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