It goes without saying that many local companies were affected by the recent recession. While things are turning around, a business’s finances are not able to turn on a dime. There are still old bills to pay, new equipment to purchase or old equipment to be repaired. Quite a few necessities were shoved in the corner until the time came when the business was flush. With bad credit a smaller company does not have a lot of options. However, there is a merchant cash advance for those with bad credit.
According to Reuters prior to the recession there are 1700 fewer community banks than in 2006. These smaller local banks were a lifeline for community businesses that needed loans to continue to operate. When that avenue was tapped business owners could get advances on their personal credit cards or get a home equity line of credit. Most of the merchants with bad credit have maxed out their credit cards and they can totally forget about a home equity loan – even if they are not upside down.
Alternative small business financing is filling the void left by reduced small business bank lending and by the devastation of the financial crisis on small businesses funding. The quickest and most popular method of securing needed capital is through a merchant cash advance for those with bad credit. The merchant cash advance can be structured via credit and debit card sales or by checking account ACH if the business is not one that typically accepts credit cards.
The beauty of these programs is that they are designed to coincide with a business’s ups and downs. Bad credit merchant cash advances for businesses that accept plastic are set up so that payments are lower in slower months and increase during high volume months. This way a company owner does not have a fixed high payment that he would with a small business loan that could put him in a bind several times a year.
Qualification is simple and approval rates are exceptionally high. Unlike the traditional small business loan that requires tons of documents as well as a good credit score, the merchant cash advance requires a basic application with no tax returns or financial statements. Small business lenders only look at past performance. Merchant cash advance lenders look to the future. They understand that a company and its owner represent more than a simple credit score. Merchant cash advances for those with bad credit can be awarded to individuals with a score of 500 or below.
If you are a small business needing cash in a timely manner, contact First American Merchant Funding at 1-888-785-6811 today or by clicking below.