If you’re labeled as a high risk merchant, you can still explore high risk business lending solutions for your company. Today, there’s a myriad of alternative high risk business loan options that you can use to get the necessary financing for your high risk business. Let’s move forward to find out more.
Where to Get a High Risk Business Loan
Having easy access to the necessary funds is among the top issues any business owner can face. This is especially true of merchants tabbed as high risk. High-risk business financing options such as merchant cash advances (MCAs) are a great option to consider. In fact, this is the fastest access to additional financing from an alternative lender.
A merchant cash advance from a true alternative online lending expert like FirstAmericanMerchant.com is a preferred option for many entrepreneurs. First of all, an MCA isn’t a loan: it’s a sale: You get funding based on your future credit card sales. That’s the reason why lenders are more interested in the cash flow of your business when determining your eligibility.
The FAM cash advance alternative is famous among high risk business owners. The rates and fees are the cheapest possible. FirstAmericanMerchant.com is an award-winning business funding provider and payment processor that specializes in the high risk sector. Also, FAM carries an A+ rating with the BBB and boasts a 99% merchant approval rating.
Why Your Business Is High Risk
When approving your loan application, financing providers are interested in whether your business poses risks for them or not. Usually, the following factors determine the high risk nature of businesses:
- Startups and new businesses, meaning they have lack business experience
- Businesses without large or with uncontrolled revenue streams
- Poor personal credit
- Companies in risky or unstable industries
- Rate of failure
- Large investments
- Payment issues
If you’re a high risk merchant, expect to find higher interest rates, large or frequent payment requirements, short term contracts, and interest rate hikes in case you default.
As you see, business funding providers generally label industries high risk if these businesses aren’t likely to succeed. Thankfully, this isn’t the end of the world: you can still obtain the necessary funds for your business from a reliable alternative online lender.