Bad credit can cripple a growing business as traditional lenders turn away good businesses that have had a little bad luck. But business owners no longer have to beg banks for loans. A new study shows that only 25 percent of new merchants seek out traditional financing. Instead, many merchants seek out more efficient and less restrictive sources of bad credit business loans. The following are a few popular sources of alternative lenders.
Credit Card Payments. Merchants that accept credit cards can acquire loans from merchant cash advance companies. Merchants can get cash upfront in exchange for a percentage of future credit card sales. This is a great option for merchants that have regular monthly credit card sales, but have had some credit problems.
Micro Lenders. Businesses with credit scores between 300 and 629, might consider micro lenders. Micro lenders regularly give out loans between $3,000 and $35,000. Micro lenders have less restrictions than traditional banks, and much faster approval times.
Equipment Lenders. Another great option for businesses with small credit, are equipment lenders. Equipment lenders use office equipment as collateral, and offer flexible programs for start-ups and small to medium-sized businesses. Equipment lenders don’t consider personal credit when providing these types of loans.
Social Lenders. Social lending websites are a popular way to generate capital. Merchants can skip the application process and appeal directly to investors, friends, and family for funds. A successful campaign can be generated relatively easily with a creative message or sales pitch to broadcast to potential funders around the world.
If your small business has bad credit and is in need of quick, competent lending, contact First American Merchant. First American Merchant funding will provide cash for equipment, payroll, start-up costs, and more. Don’t let bad credit stop your dreams of a successful business. FAM is an online merchant cash advance organization that assists small to medium sized businesses reach their financial goals through short term loans and competitive rates. FAM will give business cash advances to merchants with bad credit.