Top 4 funding options available for businesses who have bad credit
Businesses with bad credit often have a hard time getting funding. This can be daunting, especially if you are just starting out and need money to get your business off the ground. However, the good news is that there are options available for businesses with bad credit.
In this post, We’ve compiled a list of the top 4 funding options available for businesses that have bad credit:
- Merchant cash advance: This is one of the most popular options for business owners who want to get funding for their ventures. A merchant cash advance is a short-term loan that works by using your future credit card sales as collateral. For taking this loan, you have to apply for an advance from a cash advance provider. Who then takes a percentage of your daily credit card sales until the loan is repaid in full.
- Invoice factoring: Another option available for businesses that have a bad credit history is invoice factoring. Invoice factoring is another type of financing option that allows businesses to receive immediate cash payments on their outstanding invoices before they’re paid out by clients. This not only helps prevent cash flow problems. But also gives you the funds that you need to pay off any debts you owe.
- A business line of credit: A business line of credit is a revolving loan that allows you to access funds. When needed without having to go through the application process again. It’s ideal for small business owners who need cash flow flexibility and can’t afford to wait weeks. Or months for approval on their applications. There are no set repayment terms with this type of financing. And you can use it any time you need it – whether it’s to pay employees or purchase inventory items.
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- Asset-based lending: It is a form of financing where assets of your company are used as collateral for the loan. The lender usually takes possession of the asset that is used as collateral until the loan is paid off. So, in this way, a business loan for poor credit can be obtained easily with reasonable interest rates and repayment periods.
So, don’t think anymore. Just contact a lender today and talk about a business loan for poor credit. Whether you require working capital to finance your next big project or you’re looking for funding to help your business expand into a new market, a funding advisor will help you out.