If you own a small business, you know how difficult it is to acquire a loan. Don’t let bad credit or lack of business experience keep you from the loan money necessary to make your business grow. There are a variety of alternative ways to acquire loans that don’t require extensive paperwork, long-term contracts, or high rates. The following are less restrictive and more efficient ways to get a small business loan.
Bank deposits – If your business makes regular bank deposits, it can acquire a revenue-based loan. Generally, a business can get a business loan that is about 10% of its annual gross deposits. This type of loan doesn’t require the business to have good credit. Plus it takes only 7 business days to obtain revenue-based loans.
Credit card sales – This is known as a merchant cash advance, and gives businesses cash upfront in exchange for a share of future credit card sales. This is a good option for businesses with regular monthly credit card sales, but who have bad personal credit. When considering this option, be very selective about the merchant cash advance provider you select. Some cash advance organizations charge high interest rates.
Also, most merchant cash providers take a predetermined percentage of your daily credit card receipt volume. Other cash advance providers might offer a fixed monthly installment plan for its repayment method.
Credit Partner – Some companies use others as credit partners for obtaining business credit cards. Finding a business partner with a strong credit score is a good strategy.
This method can be risky for credit partners. However, this partnership results in unsecured business credit cards, that won’t appear on the co-signer’s personal credit unless loans go into default.
First American Merchant will give your small business the much needed funding it needs to succeed. First American Merchant funding is an online merchant cash advance company that helps small businesses achieve their goals with short term, flexible loans and competitive rates. FAM gives business cash advances to merchants with bad credit and other issues. Contact us to learn more about our bad credit business loans.