While the “high risk” label is used for many things, one of the newest hits an entire generation: The Millennials. The Millennial generation has developed terrible financial issues, which could be attributed to many things: extravagant reality TV, their parents’ financial woes, and other things. This is bad for their personal finances, as well as for their professional life. While Millennials want to become business owners, this stigma can make it hard for them to obtain a small business loan.
Most businesses at one time or another needs a small business loan, but being in the “high risk” category seriously affects your small business loan funding success rate. While you may have a great business plan, and the industry may be booming, the “high risk” label that is placed on Millennials can make a negative impact on their business plans. Millennials need to look for a “high risk” small business loan provider, or a small business-funding provider. They may sound the same, but the differences are huge.
With a traditional small business loan, the business owner must start to pay back the loan almost immediately, regardless if the business is making a profit. Banks and loan lenders do not care if your business is failing; they just want their loan paid back, and paid back on time. With small business funding, such as the services provided by FAM, the money is not paid back until the business makes a profit. This means that if your business does not make a profit for nine months that you do not begin to repay for nine months. Also, a small business funding service, such as FAM’s, takes the payments out of your merchant account. This helps you by giving you one less bill to keep track of. The payback percentages are also customized to each business, so be sure to contact FAM to find out a percentage for your company. Perhaps best of all is that any business, big or small, good credit or bad credit, senior citizen or Millennial operated, can partake in this service.
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