Running a small business is not less than a challenge. It is very difficult to run your own business in a thriving economy. Therefore, they need loan to finance their company. Many of the small business owners would ask banks to finance their business. But the banks decline 98% of the applications of the small businesses due to their bad credit score. Bad credit business loan also classified as Business Cash Advance or Merchant Cash Advance.
Bad credit business loan is the new alternative method to receive working capital for your business. It has 100% approval rate. Any small business can get a loan even if they have a bad credit score. The catch is that the company should be in business for at least 2 years. Bad credit business loans are one of the easiest and most popular methods for the small business financing.
Bad credit business loan is different than the other business loans in the following ways:
90% Approval Rate
Bad Credit Business Loans has a high approval rate for the qualified merchants and can get the loan within 3 to 4 days after the paperwork is submitted. Banks on the other hand, mostly reject the applications of the small businesses due to their bad credit card score. Merchant companies approve the loan within 1 hour after submitting the paperwork and the required documents.
No Collateral Requirement
Merchant companies do not ask for collateral or personal guarantee from the business owners who require bad credit business loan. On the other hand, the banks require collaterals and personal guarantees from the business owners, in case you fail to provide them, your loan application gets rejected instantly.
Funding on Easy Terms
Merchant companies can give you Business Loan for bad credit within 5- 7 days after your application has been approved. On the other hand, banks reject loan requests of businesses with bad credit score.
Flexible Repayment Terms
In Bad Credit Business Loans, there are no monthly installments to be paid. The cash provider has already allotted a little percentage from the monthly sales of your company. This ranges between 12 to 20 percent of the money. The provider wouldn’t take legal actions against you if you are not able to pay the money on time.
Merchant companies are the best financial solution for any small business owner with bad credit score in need of financial assistance.