Where to Find Bad Credit Small Business Loans
November 17th, 2010 Filed under: Bad Credit Small Business Loans — Small Home Business Author
Even in today’s restricted credit environment, there are options for bad credit small business loans. Some of these options will work better than others, depending on the type of business you have. One thing is for sure, banks and the SBA are not approving the vast majority of the business loan applications they receive.
Are you a manufacturer, equipment dealer or a business with a lot of physical assets? – The first place you may want to look after a bank or SBA type of loan is a business loan broker. Typically, they have many different programs that can be secured against your assets and feature competitive rates for all credit types as well as higher loan amounts
Watch out for: Longer terms(3,5 or 7 yrs) and potential large “balloon” payments at the end of the term
Are you a retailer that accepts credit cards? – Typically, you may be eligible for a “cash advance” from a merchant cash advance company based on your future credit card receipts. These types of bad credit small business loans normally can change rates during repayment.
Watch out for: Extremely high rates and fees, as well as requirements to switch processors and/or buy equipment. Cash advances are not considered loans and are largely unregulated as to the maximum rate charged.
Are you a small or medium sized business that needs quick, cost-effective working capital?- A Credit Card Receivable loan is a short term, true regulated business loan with rates that are 50-80% lower than a cash advance, with no upfront fees, or requirements to buy equipment and business owners with credit scores as low as 550 can be approved. Typically, these loans can fun in 7 to 10 business days. Click here for more details.
Finding a cost effective option for bad credit small business loans in today’s economy is not an easy task. However, it is also not as impossible as the media may make it seem. The key is to be aware of all the options, ask pointed questions before committing, and make sure you are dealing with a financing expert who can accurately explain the details you will need to know.
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.
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http://badcreditloansforbusiness.com
