Traditional loan providers such as banks and few loan organizations would check your credit score first and then check further, looking at the detailed application and other required things. Currently, the credit score which is demanded to offer you loan facilities is 700 or above, if you fail to reach this level then there are nearly no possibilities for you to get business loan. .
However, the evolution of new lending agencies have made it easier for people who have low credit score to start or organize their business in the market and get noticed by buyers and their competitors.
Credit unions are qualified in offering you small business loans on nearly no extra interest and re-payment costs. Credit unions specially work to provide finance to people with low credit scores but high collaterals and guarantees. Credit unions give minimal importance to credit scores and also provide you suitable work plans to increase your efficiency in business working.
Micro Lending Services
Micro lending services offer loans to small businesses. The loans offered are not so high but enough to kick a good start towards success. Since, the loan amount is not sky rocketed, they also charge low upfront payments. Your loan application will be granted very easily, you don’t need to put in so much of effort to convince the agency to provide you loan.
Cash Advance Programs
Cash advance programs not only provide business loans but are known to offer best plans to execute your business to increase the chances of success. Cash advance providers look at collaterals and private properties and under look your credit history and record. Once the application is approved, loan is transferred immediately to your account and only a little percentage of total earned profit in a month is deducted.
Private Lending Options
Private lending is the most feasible and flexible form of business loan, provided you can find any friend or family member who can offer you business loan. It frees you from the tension of following up any rigid or strict rules but the only problem in private lending is that you might not be offered heavy loans and you will still feel the need to look for other lending options.
Merchant companies have proved to be the best option for small businesses funding. Whether you plan to expand, sustain or renovate your business Merchant Advisors can help you by providing the finances you require.