Everyone has dreams, but it takes money to execute them into reality! Running a small business, and that too a startup in this economy is a bit stressing. Not all small businesses can generate stellar profit in its initial stages. A stream of flowing cash can help establish a proper setup. This is where new business loans with bad credit come in to play a part. Due to a significant increase in small businesses in the industry, the number of alternative business loans are increasing as well.
Merchant Advisors provides new business loans with bad credit that are specifically designed to amplify the growth of startup businesses. Apart from this, Merchant Advisors also offers secured person to person direct lending monitored and regulated by the Securities and Exchange Commission.
$5,000 to $1 Million
6 months to 5 years
1. Fast, reliable, and easy process.
2. Lower interest rates.
1. Loan approval takes longer than usual.
2. A 'fair' or 'good' credit score is required.
Required Credentials To Qualify For a New Business Loan
The most relevant question in the mind of business owners is, ‘Will I be able to qualify for bad credit business loans?’ Let’s break down the new business loans! Usually, most of the traditional and alternative lenders offer their loans to business owners who have been running their businesses for more than six months. So, it is only just that new business loans with bad credit go to owners who have been managing their companies for less than five months.
Furthermore, a credit score holds the most crucial spot in loan approval. Your current credit score positively correlates with loan approval; the higher your credit score, the higher are your chances of business loan instant approval. Let’s have a brief look at the qualification criteria!
At least 660
18 years and above
Permanent US citizen
You must have an open bank account.
If you fulfill the criteria, then you are a perfect candidate for a new business loan, peer lending, crowdfunding, and other multiple grants. If you have a bad credit score, we have good news for you! All these peer lenders don’t look for a wholesome credit score; instead, they are more interested in your plans and future aspirations concerning your business.
How can I get a New Business Loan?
Merchant Advisors gives you a loan up to $25,000 on as low as 7.93% interest rate.
Fill an online application in minutes.
It only takes a couple of days!
Make a fixed monthly payment on time.
SBA Microloans follow the most stringent approval loans. We recommend you contact the lender to get the essence of the prescribed documents. The SBA microloan approval takes a couple of days. If you already have a file full of required documents, this will speed up the process.
Business Credit Cards have one of the most relaxed application processes. All you have to do is to give them your Social Security Number and Federal Tax ID and the lender and the bank will sort out the rest.
Application and approval criteria of the crowd and private business funding depends on the nature of your business and the loan amount. Now that you have a brief overview of potential business financing options access your business needs and make a wise decision.
Diving Deep Into The Mechanics Of New Business Loans
It is easy to dream big, but money is one of the harsh realities of life. One can’t transition a dream into reality without money; it's a fundamental element! So before you give up on your small business dream, let us take you out of the misery. Merchant Advisors offers a variety of business funding options, explore them one by one.
If you are thinking of running a business as a minority, then an SBA microloan might be the best fit for you. SBA loans are convenient business funding, and it provides a loan amount ranging from $500 - $50k. This amount will easily cover the cost of day to day operations. The micro in the name gives a brief idea about the amount of the loan. The small business can use the loan amount to their benefit very easily.
In addition to this, SBA Microloans are not working directly under Small Business Administration. The SBA is in direct contact with the lender, so the final verdict has to come through the direct lender. To put it in simpler terms, the lender will act as a middle man between the SBA and the borrower.
Moreover, as a new business owner, you can benefit from SBA’s flagship 7(a) program. This program is designed to give access to some working capital management for small business.
All things considered, SBA microloans will give you enough credit to carry out all the expenses smoothly. So, apply for one and alter the fate of your new business.
One of the most reliable and easy ways to gather funds for your small and new business is Crowdfunding. You can raise a considerable amount of money by putting up your campaign on online platforms. Through this business funding option, the lender will set a potential goal. After going through your small business campaign, people will donate money if they feel inspired.
The best feature of crowdfunding is you don’t have to offer any down payment, and most importantly, you will have the complete ownership over the equipment from day one. To appreciate the contribution, you can send them a gift, or a thank-you card. This type of direct lending is called ‘raised crowdfunding.’ This particular feature gives it an edge over equity crowdfunding and debt financing.
So, contemplate hard, and apply for crowdfunding if you think your business can take something beneficial from it.
When nothing works for you; when you have exhausted every business funding option offered by the traditional and alternative lender, only and only then, you must turn to close friends and family for financial aid.
Despite millions of risks involved in asking for money from your friends and family, it still exists to be the most common business funding option among small business owners. If you can easily persuade your loved ones to fund your business even if you have bad credit, then, by all means, you should go with it. It all revolves around the severity of the risk you are willing to take. When you go with this business financing option, remember that both your business and family relationships are endangered by it.
Now that this is your last resort make sure you are putting your trust in reliable members. Before both parties shake hands and sign the dotted line, be certain your family members acknowledge your business strategy and how you are going to consume their money. It is recommended to set the boundaries from the very start to avoid any confusion later. Once every fact is laid straight on the table, we wish you good luck and pray you will handle the future conflicts professionally.
Business grant is the most efficient way of business funding your business, and securing it requires a spotless financial track record. Although the business grant is not an appropriate replacement of small business loans if you think this can bring a change in your business, then you must apply!
Most of the famous and reputable lenders have reserved the small business loans for specific organizations so they might not entertain you if you don’t fit the criteria. Some business lenders are specific for the owners from a particular area. But lenders have designed a business grant in accordance with business needs and business owner’s features. For example, if you have served your country in the past by being in the military, then you will be granted a loan especially formulated for veterans. Moreover, if you are a dedicated and hardworking businesswoman, then Merchant Advisors has small business grants for women. Use the business grant to its full potential.
If you need money for short-term needs, then it is a wise decision to pursue Personal Business Loans. Personal business loans come with plenty of plus points and drawbacks. These loans offer flexible repayment terms, low APR, easy qualification criteria, and simple loan approval process.
A primary aspect of a Personal Business Loan is it puts your personal assets at risk. Failure to make the repayment on time results in the lender taking control of your assets. You must be familiar with the drill; once the borrower has paid all the debt to the lender, the borrower is free!
Funding a small business with the help of a business card is a tradition among the business owners. Despite being one of the most expensive business funding options, it has proved to be financially useful to many small business owners.
It is not the most traditional route to take to fund a small business, but since it gives access to money to a certain amount, it is a financial fix for problems. Make sure to pay the debt monthly; otherwise, you will fall into the never-ending maze of applying and utilizing business loans.
This funding option comes with fast approval, and it gives the autonomy to the user to take as much money as it is required, and lastly, it is unsecured. Due to these characteristics, many business owners are inclined to use this business financing option. Taking a glance at history, businesses that have solely relied on the credit cards have turned to dust.
Merchant Advisors has penned down every possible business funding option for small business; now it is your decision.
Why elect Merchant Advisors as your Business Loan Lender?
We offer custom-tailored services as per the needs of our customers.
OOur rates are comparatively lower than the interest rates of traditional lenders.
It will only take a couple of minutes to fill an application; we value your precious time.
Your identity and business’s information are secure; we don't share information with investors.
The lending company automatically deduct fixed monthly payments from the bank account.
You are allowed to repay the loan earlier than it is scheduled by the lender without any penalty.
There isn’t any hidden fee. The loan application and approval process are clear, with no catch involved.
Peer lending is not available in
the following states:
Merchant Advisors, just like many alternative lenders, has made it easier for the lenders to secure the small business loans. The primary question one has to ask is, why do you need the bad credit business loans? Make sure you have a realistic, and rational reason to apply for the loan.
So, if you are certain, you will make the payments on time, then apply for a business loan and take your business to new heights.