Reasons to Choose Alternative Business Funding
If you’re thinking of starting a business, or are already a small business owner in need of funds to expand or stay profitable, one of the first things to consider is where the money will come from. Bank loans are acceptable for some business owners, but they often require collateral. If you have bad credit you might not be able to secure one. Being turned down for a loan can be a discouraging prospect, but there are other options available. Here’s what you need to know about alternative business financing.
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If you’re looking for a way to fund your business’s expansion, buy new equipment, or pay off existing loans, the options can seemingly be endless. You may have heard about alternative methods of funding and wondered what makes them different from traditional bank loans. Here are a few reasons why a different funding option might work best for your business.
With a merchant cash advance (one of the most popular alternative funding options), a daily fixed amount is taken out of sales until the loan is repaid, making it much more convenient than monthly loan payments. And one of the most convenient features is that if sales slow down for a while, the amount taken out goes down proportionally. This ensures that you don’t have to worry about making loan payments even if you find yourself having a slow week, month, or season. Even businesses that don’t use credit cards can be eligible for a merchant cash advance.
Credit History Is No Problem
A bad credit score won’t affect your ability to secure a merchant cash advance. All you need is about three months in business to successfully apply for the program. As long as you are turning a profit, you can receive financing from as little as $1,000 to as much as $1,000,000. Because a merchant cash advance lender purchases a portion of projected future sales, past credit history is just that—history!
One of the most convenient things about a merchant cash advance program as opposed to a traditional bank loan is that you can easily refinance without having to reapply. Once you repay 70% or more of the original amount, you have the option to refinance up to 200% of the amount you originally received.
Once you are approved for a merchant cash advance, you’ll receive money in your bank account in as little as 48 hours. Often merchant cash advances offer same day approval, so you don’t have to wait to finance your dream. Plus, the application process is much simpler than applying for a bank loan. Simply fill out an online form to receive funding for your business. The amount you can receive will be calculated based on your gross monthly sales.
No Personal Guarantee
Unlike traditional loans, which often require collateral in the form of equipment, real estate, cars, etc., a loan alternative requires no collateral and no business plan. You also won’t have to sign a personal guarantee, which is required by many lenders for personal loans and small businesses.
Don’t put your long-term plans on hold because of credit and funding issues. Get your business on the fast track to success with a business loan alternative from Horizon Business Funding. We specialize in providing merchant cash advances for businesses that have been underserved by financial institutions and need money to expand. For more information about the program, call (888)-487-5509 to discuss your future with us today. You’ll be glad you did.