When in need of a business loan, most people head straight to the nearest bank. Banks are the ‘go-to’ place when you need a business loan, but they don’t always approve all loan requests. Depending on your credit score and history, you may not be eligible for a loan from a bank. However, that doesn’t mean you can’t secure funds for your business.
Banks aren’t the only lenders
Fortunately, we live in an age that provides alternative solutions for all issues. Banks are no longer the only lenders around. With First American Merchant, you can get your hands on merchant cash advances.
With merchant cash advances, you can benefit from a lump sum of money that will help your business grow much faster. Whether you’re business is considered a high-risk business or even if your credit history is bad, approval is much easier when choosing cash advances over bank loans.
Getting cash advances is a solution for small business owners with bad credit scores, but they aren’t perfect. You should keep in mind that interest rates are normally a little higher than traditional bank loans. This can end up costing you more money in the long run.
Another downside of cash advances is that they are normally shorter term. This means that you will need to usually reimburse the loan in full much sooner than you would with a regular bank loan.
If these downsides aren’t much of an issue, it’s definitely worth consider merchant cash advances for your business.
Why you get approved
Merchant processors such as FAM often approve businesses with poor credit scores. Normally, this is because they don’t use the same data to qualify your business as a bank would. Rather than basing everything on your credit score, most merchant processors use information from your sales and profits. If you’re running a business that makes profits rather than losing money on a daily basis, they will recognize that as a positive factor towards your approval.
Other factors such as your costs, income and the value of your business can also come into play. In the end, it’s much easier to get approved for cash advances than it is to get approved for bank loans.
Contact FAM for a Merchant cash advance today!