Bad Credit Small Business Loans ,Options for small businesses with poor credit

 

 

Congratulations, you did it, you opened a small business and are doing great, but now you have bigger aspirations. You want to expand, do some marketing, hire new staff, maybe remodel or even add inventory and so you apply for a small business loan only to find out that you have been declined. Why you ask? This is a loaded question, but the number one contributing factor is bad or poor credit. We understand it takes a lot of courage and initiative to be a business owner and at one point or another your business may need working capital, renovations, or needing to expand, the list goes on and on. Having access to capital for your business is important and receiving a bad credit business loan, regardless of your credit will become vital.

What is a Bad Credit Business Loan?

Bad credit business loans are small business financing options that do not otherwise require a high fico score needed for an approval. Not long-ago banks and credit unions were a small business only option, you either fit or you get declined and unfortunately that came to a whopping 78% decline rate, bad credit business loans were nonexistent. Alternative Lenders like Capital for Business offer a business lending model much different from your traditional banks and credit unions, let us call it a breath of fresh air.

Does a Bad Credit Business Loan Come with a Guaranteed Approval?

Business loans with bad or poor credit does not offer a guaranteed approval, just like having good credit doesn’t offer a guaranteed approval, but we have a vast marketplace of 100+ lenders and our approval rate of bad credit business loans comes close to 90% approval rate. Immediately you think that you will have to provide tons of collateral or assets, our marketplace of lenders provides many unsecured business loans that will not require any assets to be leveraged at all.

Types of Bad Credit Business Loans 

Business Line of Credit

A business line of credit provided by Capital for Business is based on the revolving credit. That means you can use the funds over and over again. Having a business line of credit provides you with the extra flexibility and peace of mind when it comes to injecting money into your daily operations. It helps you avoid downtime and make sure things are running smoothly

Small Business Loan

A small business loan from our marketplace of 100+ alternative lenders will enable you to get the capital you need for your business growth. Our high approval rates mean that we say ‘Yes’ when banks say no. Our lending process which takes less than 5 minutes will not affect your fico score and we boast a 24-hour loan approval.

Working Capital Loan

Working Capital loans can help you take care of immediate needs in your business, whether that is a cash-flow shortfall or a new business opportunity. No collateral is required for our working capital loans or short-term funding, the required documentation is limited and perfect credit is not needed. Nearly every industry can get a working capital loan. Working capital loans are perfect for business owners who need short term funding to grow. Working capital loans are simple, fast, and affordable and are designed to help with seasonal shortcomings with revenue, or need to boost inventory.

Merchant Cash Advance

A Merchant Cash Advance is an innovative alternative to a traditional small business loan. Capital for Business utilizes your expected future credit and debit card sales to be able to provide you with working capital so you can put your business plans into action. Instead of fixed daily payments, the repayment for an MCA is completely flexible.

Equipment Financing

Are you in the need for new business equipment but don’t have the necessary capital on hand to pay for it? Equipment financing done with Capital for Business is truly simple fast and affordable. We are a top of the line marketplace alternative lender that can provide you with same-day funding to purchase any type of equipment that your business may need. Whether software, heavy construction equipment, vehicles, and much more. You will repay your equipment loan with low monthly payments and we keep the upfront cost minimal to something that your business can afford.

Invoice Factoring 

At Capital for Business, Invoice factoring is a quick and flexible source of funds for businesses that are waiting for outstanding receivables to pay. We simply utilize your accounts receivable as the collateral and advance funds against the face value of your invoices. Invoice factoring allows your credit line to grow proportionately with your sales cycle. We can fund as little as $5,000 a month and up to $2.5 million for larger companies.

How to get the best out of your short-term financing goals

Having worked the rat race of the corporate culture has left you depleted and you’d rather do your own thing. You have decided its time now that you devise up that business plan and get to it. Naturally so, the first hurdle here would be getting your self-funded or getting some business capital.

Regardless, the best of plans by entrepreneurs never see the light of day as progress is thwarted by a lack of venture capital. So, it’s integral to go about it in a rational way and firstly determine how much working capital funding do you exactly need.

Now start with making an estimate of your costs, that includes all things like the various departments in the company’s structure, physical office cost, business licenses, insurance policies, equipment, supplies and a whole myriad of things. Only once that you are done with these things and have a rough estimate can you get down to cost cutting? Make sure you have put pen to paper and jotted down all the necessities and routine supplies needed to streamline your business. You need to be able to justify all this expenditure when going for business capital loans.

Working Capital Loans are considered as short-term funding programs. They help you cater to your immediate needs. However, with Capital for Business, there is no need for collateral and there is minimum paperwork. Nearly every industry is acceptive of these, and you can easily request amounts between $5,000 to $1,000,000 depending on your monthly sales volume.

Now next to Working Capital Loans, other alternates include getting what’s called an angel investor, however, they are hard to come by and end up owning a considerable portion of your company. Crowdfunding too is a great idea and you can check out the many platforms online, where you just upload your proposal and business plan, and interested parties fund you for it. Talk about fast business loans. Going for factoring too is a great option, but if you are considering short term financing solutions, Working Capital Funding could be it for you.

How Merchant Cash Advances can streamline your operations

So, let’s paint an ideal picture here, you are a business and your sales are mostly on debit or credit cards. Now, a merchant cash advance – not technically being a loan – is simply an amount of cash given to you by a financing company in exchange for a certain percentage off your sales, in addition to a simple fee. It is a hassle-free way for short term financing for no collateral, even if you have a bad credit score.

On one hand, MCAs are great when you require a fast-small business loan, suitable for a multitude of business purposes with fairly easy approval rates especially when your credit score is not so good. But on the other, Merchant Cash Advances do come with a higher fee, less freedom to change merchants and a regular charge on your credit card receipts.

Ergo, if you have a limited business history, bad credit score and/or most your sales are transacted on credit/debit cards, Merchant Cash Advance is a fitting solution to your financial short comings.

Innovative alternative lending to traditional small business loans, Capital for Business provides you easy financial fixes to realize your dreams. Our Merchant Cash Advance funding option gives you the flexibility to work around your business’ organic cash flow. If you have been processing credit cards for a minimum of 60 days and process at least $5,000 in credit card sales per month, you can easily utilize our Merchant Cash Advance service and have access to business capital which is just as fast as it is conveniently efficient.

The Science behind Business Line of Credit

Business Lines of credit and the availability of money itself can be instrumental in those crunch times when a business is cash strapped and has to pay vendors, and employees. This may be a result of overtrading, or a few hard quarters when a business is under pressure from economic cycles. Many businesses may also have low cash cover because of their recent entry into the industry and need money to expand. This is relatively true for new small businesses, who have just registered their businesses.

A business line of credit can be in two forms, secured and unsecured.

• Secure lines of credit are usually revolving, can be in millions and billions of dollars, and require collateral to be posted in return for cash. This is usually reserved for more established multinational businesses who need cash during recessions or mergers.
• Unsecured credit lines are primarily aimed at small businesses. They do not require any collateral to be posted, are relatively cheap to borrow due to their low interest rates, and may get a grace period before monthly repayment or interest payments start. They are different from overdrafts, and small business loans.

When to Seek Line of Credit

It is preferred that the unsecured line of credit is sought when a small business thinks their working capital requirements will fall short to repay short term debts and expense. Because unsecured lines of credit are not bound to be used for a specific task, they can be used for a multitude of purposes. Still, a business should have at least three months of cash cover needed to run operations if the line of credit was not provided. Banks and credit unions increasingly look for financial metrics that use current ratio as a basis for lending short term cash. Additionally, after an unsecured line of credit is provided, after a grace period of 30 days, monthly payments will become due and if a business is not able to earn back the investment, they might become insolvent or bankrupt.

When Not to Seek Line of Credit

It is recommended that a small business refrains from lines of credit if they have enough cash to finance their needs. Seeking unsecured lines of credit as a means to increase cash cover without a sustained need may put unnecessary strain on the short term borrowings. A business will be required to use the finances and pay interest payment irrespective of them not using it. Small business owners who have a vendor to pay in the future, or want to spend on revenue or capital expenditures, should time their credit lines in accordance with the payment structure needed to finance these expenses. Seeking unnecessary funds without purpose may degrade interest cover in the long run. There is no denial that seeking an unsecured business line of credit and balancing the financial structure of a business is an art. A delicate business needs to be established to provide businesses with ample cash to operate effectively and translate them into tangible revenues.

How to Use a Business Loan to Grow Your Business

Whether you are just starting your business or looking to expand to the next phase of your roadmap, capital is always good to have in order to run a successful business. Even if you already have your own capital, chances are you would need a small business loan from time to time. Depending on how big your business is and the industry, working capital loans can transform the way your business runs if invested smartly.

Here are some ways that you can use small business loans or a business line of credit to grow your business in the most efficient and sustainable way.

Invest in professionals
Creating a business requires a lot of effort and you are by no means a fountain of all knowledge. In order to reach your full potential, a key area of investing in small business loans is in recruiting experts that can help you grow. Invest in a business coach with proven industry experience who can help provide insights and advice, sales coach to assist you with a marketing strategy to increase sales conversion and profits and a finance director to help you control costs and discover ways to leverage your business. A good team of lawyers is also important to grow your business. Experts help you be better and have a life outside your business.

Update your website
Your website is your 24/7 business concierge service and you must give your customers the best possible experience on your website. A good website can serve as both a global storefront and a means of growing your brand and community. An old, clunky website will set you back a lot of customers. You could use part of your business loan to hire a website designer to upgrade your website and especially optimize it for mobile phones and tablets for today’s generation.

Operating cost
You can use your working capital loan to take care of your business operating costs like machinery, invoicing, electricity bills and other operating expenses. You can also invest your small business loan in purchasing a van for deliveries and logistics if your business needs one.

Expanding business outlets
Another smart use of capital for businesses is opening a new location or moving your business to a larger, better location in readiness for expansion. Moving to a new location could involve renting or buying office space, warehouse space, a mobile truck or pop-up shop materials. A larger store means a larger assortment of offerings and the potential to increase your customer base. You are able to reach more customers when you move to a busier location which will lead to business growth.

Refinancing other debts
Running a business sometimes leads to debt and consolidating your debt by means of a business line of credit is a smart way to use a small business loan to grow your business. You can increase your inventory, deduce interest payments on some debts and pay down urgent debts that could prevent your business from reaching its potential.

Capital for Business offers you easy access to small business loans with a lower cost of borrowing as well as a convenient process to make life easier for business owners. Call us or send an email today for a free consultation on how to grow your business.

Top 4 Sources of Financing for Your Business

Top 4 Sources of Financing for Your Business

Starting a new business is always an exciting journey. Financing a new business is usually risky as you don’t have revenue, a track record or a customer base to chase after. Finding capital for business as an entrepreneur can be tough sometimes as the level of risk is high. Luckily, there are many sources of financing that small business owners call on when they are looking to start up their business.

1. Friends and family

Our friends and family make up what is called “love money” when seeking working capital loans as a start-up and usually the first resort. When raising capital for a business from friends and family, a great approach is to ask for a loan with a promissory note which clearly states the terms of repayment. You may also offer equity in exchange for capital.
One of the benefits of this source of financing is that the terms are typically flexible and easy since friends and family are usually not cutthroat or experienced investors. Regardless, the business owner should also avoid things getting tricky in the future by getting a lawyer to draw up either an equity structure or a legal agreement which contains a risk acknowledgment clause.

2. Personal investment

Most entrepreneurs start their business with their personal funds as the initial source of capital for the business. This could either be in form of cash or collateral on personal assets. Bootstrapping is usually a sign to banks and potential that the business owner is committed to the project in the long term and ready to take risks to make it happen. Once the business starts having some cash flow, most of the profits are also reinvested into the business as part of the capital for business. This is one of the benefits of funding a business through personal investments is that the founder can retain the most part of the equity.

3. Venture capital

Technology-driven start-ups and other companies that have a potential for exponential growth as well as a huge capital outlay in research and development. Venture capital financing for working capital loans is usually in exchange for equity and most venture capitalists expect significant returns on their investment. When seeking venture capital, it is always advisable to look beyond the money and more into the type of investor. Venture capitalists with useful experience and business knowledge are more ideally positioned to help a start-up grow because they bring important industry connections along with the financial means.

4. Bank loans / Alternative Financing

Small business loans and business lines of credit are some of the most popular sources of funds for medium and small businesses. Because all banks offer different terms and benefits, it is always a good idea to shop around and identify which offer best meets your business needs. Getting a bank loan requires having a good track record, excellent credit history, and a viable business plan. You may also need to have a personal guarantee before a bank will consider giving you capital for business.
We at Capital for Business understand that financing a new business could prove challenging. That’s why we offer a wide range of financial solutions for working capital loans that are attractive and more beneficial than traditional bank loans.
Speak to us today for a free consultation in securing a working capital loan.

Working Capital Loan

Capital for Business-Your Best Source for Working Capital Loans-Loans from $5,000 to $500,000
Many of today’s small business owners use their cash on-hand to reinvest in their day-to-day operations. With a working capital loan from Capital for Business, you can have extra cash to do even more.
Whether it’s expanding or improving your current business, investing in advertising, or tying-up existing “loose ends” like taxes or outstanding debt, the extra cash can be just the solution you need. Capital for Business can get your business from $5,000 to $500,000 quickly and with a minimum of paperwork.
These days, regulations has made it much more difficult for many small businesses to get the working capital they need quickly from traditional banks and credit unions. But, small businesses are the backbone of the American economy and Capital for Business has developed financing solutions to help business owners get working capital that they need.
We can get you approved fast — in as few as 24 hours — and often the same day.
If a working capital loan would benefit your business then apply online today.
Whether you have good credit, bad credit, tax liens, or have been rejected by banks, Capital for Business is here to help you get the working capital your business needs.
Contact us and see what a working capital loan from Capital for Business can do for your business. Visit www.capitalforbusiness.net or Call 888.506. 3628 ext 1

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