Tips for Bad Credit Business Loan Application
Bad credit business loan alternatives continue to grow in popularity, as credit has largely remained tight for small businesses on the part of traditional lenders. Using merchant cash advance to keep a business growing through a period of bad credit issues or as bridge financing while growing into traditional loan eligibility are both common applications of this type of funding, which due to its expedited underwriting speed can be used in a pinch when other funding sources would be too slow. Even so, business owners should be aware of what goes into an application and what will effect how much they can qualify for.
Bank statements are an important part of an application. Knowing what yours look like can help create a better picture of what you can qualify for. Generally, business owners will need to submit their three most recent months of bank statements for their primary business banking account. The number of deposits, frequency and size all play a part in determining the size of an advance, but ultimately, the monthly gross amount of sales will play the largest part.
Applications can often be filled out in as little as fifteen minutes. Most applications are only a few pages long, and are submitted along with bank statements. The information on the application gives background on your business, as well as information that allows its existence to be verified. It can be helpful to have your business and personal information on hand when filling out an application, since in the event that you are unsure of something off the top of your head, you can quickly access the information. If you are having trouble filling out an application because of a confusing layout or an unresolved question, the best bet is usually to call your representative, who can answer questions directly, or to call a customer support line.
Knowing how you will utilize your capital in advance is a strong idea. While sometimes business owners seek capital simply to keep their options open and have some liquid cash on hand, many more will seek financing with a directed vision in mind, allowing the money they invest to start working for them as quickly as possible. From purchasing equipment, to payroll, since there are no restrictions on how the funding you receive is allocated, whatever you have planned you are able to go for 100%.
Photo Credit to Alan Cleaver on Flickr