How to Get Bad Credit Small Business Loans
August 26th, 2010 Filed under: Bad Credit Small Business Loans — Small Home Business Author
Many retailers have been battered by the economic downturn of the last two years. For many retail businesses, this has meant delaying vendor bills, tapping into savings or other tactics to try and make it until business conditions improved. While the best option for any small business is always an SBA type loan, the reality is that most businesses will not get approved for this type of loan in today’s restricted credit environment.
For these retail businesses, their main option for bad credit small business loans was to get a merchant cash advance from their credit card payments processor. These cash advances are not true loans, but rather, cash advances based on future credit card receivables. Such advances are almost always characterized by factor (interest) rates as high 50%, high upfront fees, high hold-back (payment) rates, and the requirement to switch credit card processors and/or buy equipment.
Over time, these merchant cash advance loans can become a crushing burden to businesses that use them, as they watch a large percentage of their daily sales volume go to paying back the advance and associated interest.
Now there is a much more cost effective way for businesses to receive bad credit small business loans. This new type of business loan, called credit card receivable financing, is characterized by:
- Rates that are 50-80% lower than a Merchant Cash advance
- No Upfront Fees.
- No requirement to switch credit card processors
- No need to buy any equipment whatsoever.
- A true business loan that builds positive credit for the future, unlike a cash advance
- Owner credit scores as low as 550. Max loan $500,000
- Approvals in 48 hours, fundings in 7 to 10 days. Available in all 50 states.
In today’s economy, small businesses need a way to get the capital they need without being taken unfair advantage of by cash advance companies looking to reap unfair profits. To find out more about one of the most cost effective way for merchants to get a bad credit small business loan, click here
Neal Coxworth is an entrepreneur and a 17 year veteran of the consumer credit industry with experience in originating, underwriting and processing mortgage, student and consumer credit loans. He publishes an informational blog for consumers to provide insight and analysis to all major loan types as well other topics such as credit history, that most consumers will face.
TO FIND OUT HOW TO OBTAIN COST EFFECTIVE BAD CREDIT SMALL BUSINESS LOANS, CLICK BELOW
http://www.neal.kvmgt.com/business_loans.html
