Where Bad Credit Business Loan Alternatives Fit into the Financing Landscape

by / Thursday, 24 April 2014 / Published in Bad Credit Business Loans

bad credit business loans

There are many financial products geared for small business owners out there. Since the financing landscape can be so alien and complex, small business owners might not be fully aware of the range of options available to them. For small business owners who, due to bad credit or other financial issues, can’t find financing from traditional small business loan programs, the issue can become a lot cloudier. Aside from taking the time to create a plan regarding when to apply for financing, they also need to consider what they are eligible for in the first place.

Where bad credit business loan alternatives fit in. More commonly known as merchant cash advance, these products function similarly to small business loans, but emphasize monthly sales over credit score as their main criteria for approval. These products are typically much faster to get approved for than business loans since they don’t require collateral, so for business owners who have bad credit or for those who simply need fast access to liquid capital, they provide a strong option.

Shorter terms than a small business loan, but faster renewals. These products are most often approved for shorter terms than a more difficult to get small business loan, but after they are mostly paid off a business owner will usually be given the option to apply for a renewal with a better term or rate, or a combination of the two. While  a loan will be able to be stretched out for a longer amount of time, if your concern is getting capital quickly, with the option to gain more down the road, the renewal system might be a good fit for your needs.

Not a loan, but can provide fast and efficient financing even with bad credit. Bad credit business loan alternatives aren’t loans, but since business owners in almost any industry can apply and be funded within a couple days using this option, many business owners are learning about the uses and appeal of this type of financing product.

Photo Credit to Tax Credits on Flickr

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