subject: Business Loans and Financing, Bad and Good Credit Programs [print this page] Business loans and financing programs with good and bad credit are available in today's financial markets. Whether you have good credit or bad credit, available financing programs can be a solution to your business success and survival in this tough economy.
This article is going to discuss some financial business loan programs available which can give the business owner, especially without stellar credit, an opportunity to maintain is operations.
One of the newest business loans and financing programs are a no credit check program that is available up to $50,000. This program requires you to be in business for at least six months and your eligible borrowing base is calculated on your ending business bank balances for the most recent two months This loan and financing approval isn't based upon credit
This no credit check loan business program is not a merchant cash advance or loan program based upon your past master and visa master card sales. This loan requires minimum paperwork and is paid back over five months.
For businesseses that are operational for more than three years, there are cash for collateral programs available up to $100,000. These programs are based upon your business bank balance, your personal credit score and the business assets that you own either free and clear or still encumbered. These business loan programs are repaid over five years. This cash for collateral loan program requests a personal credit score at least 620 or higher depending upon your business industry.
For those familiar with merchant cash loans and advances, those programs are still out there with programs that start as little as 15% percent and run up into the 40% range. Usually, between four to six months of prior merchant processing statements are required plus the last two to four months of your business bank statements. Many lenders have varying program requirements so it is important to acquire to its particulars. ( See Below). These merchant cash loans and advance programs can lend anywhere from $150,000 to $750,000. Personal Credit Scores for these programs vary among lenders.
Cash advance/loan programs. Most people aren't even aware of these programs.
The initial question a lot of people are asking is what is a merchant cash advance? An established business in existence for one year or more with visa and mastercard sales can qualfiy for a restaurant loan or a merchant cash advance on their past activity up to $150,000 from a financial institution and $750,000 or more per location from a true merchant cash advance company. The monthly average of their visa and mastercard sales x 1.5 will be a qualifying amount that the lender will fund up to. Some cash merchant advance companies will fund up to $750,000 per location.
This is a great way for a business to obtain working capital. Most conventional lenders shy away from the restaurant industry
These cash merchant advances/loans are great for businesses that have seasonal cash flow needs, that aren't capitalized properly and need more time to achieve their sales base, have credit issues that can't be overcome at the bank, businesses that need instant cash now, and obviously many other factors tailored to specific businesses.
These lenders aren't FICO driven and are interested in you past Visa/ Mastercard Sales for the previous six months. Usually the company's bank statements, the merchant processing statements and a signed application are required to commence the lending process. Once the lender has received these requirements, a decision can be made fairly quickly, usually
within 24-48 hours. Beyond an acceptance, the money is usually funded within seven business days.
The next obvious question, is how does the customer repay back the business loan or cash merchant advance? It is from the future card sales, a small portion is paid back each day to pay back the lender. This is important because there are no balloon payments or monthly payments to consider. The lender calculates a small repayment per day that can last up to one year.
Finding available business capital whether through leasing and working capital can be very difficult in todays times. The no credit check, cash for collateral and cash merchant advances/loans can offer the seasoned business an unique opportunity to acquire funds without all the red tape conventional banks require..
The types of industries that these business loans and financing programs cover are restaurants, bars, gas stations, all types of retail stores and shops, nightclubs, in essence brick and mortar type businesses.
Happy hunting for your business loan and its related financing..
Business Loans and Financing, Bad and Good Credit Programs
By: Rick Reed
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