If your credit is bad, it is not the end of the world either because the lenders also pay attention to other elements to make their decision. Lenders are very focused on the profile of your business, say the amount of time your business has, your annual income and your cash flow. Your business profile says how successful your business is and if it presents a risk to the lender.
The time your business has is important because a new business presents a very large risk. Another thing is the income and annual profits of your business; If your income is at least $ 100K, you have options even if you have bad credit. Also a healthy flow of funds proves that your business has the ability to repay the loan.
The best option for a bad credit situation is an online loan.
Companies that lend online usually have more flexible criteria because the vast majority are not guaranteed by the government. The terms and conditions are established by the same companies without having to conform to the regulations and requirements of traditional banks.
It is also likely that you need a guarantor of great value such as cash, property, machinery, etc., to guarantee that in case you can not repay the loan you can compensate it with that possession.
Another option is to take a cash advance from the merchant. As it is not a loan in reality, the borrower does not base his decision on your credit score, but the ability of your business to repay the loan using the sales you make through credit and debit cards. However, it should be noted that cash advances are the most expensive financial option because it is fast money.
Another option is to use credit cards, which, although they come with much more expensive interests, are easier to obtain.
Having bad credit comes with a cost, for example, it is likely that you not only have higher interest, but also other rates, or that you have to accept a shorter return period. This means that you can end up paying a lot more money than any other business with better credit. In short, your best option may be to work strategically to fix your credit and expect it to improve before taking a loan that can hurt you more. Finally, if you have capital needs and can not wait to improve your credit, we can also advise you to search the best possible option within your situation, you can start your process here. At the same time, you can start our rehabilitation program at no cost, contact us and a growth agent AJ Raffles will contact you.