Many small companies have found it extremely difficult to get a loan, which may be necessary to expand the business, buy inventory, pay bills or pay employees, especially in a tight spot. However, if you have bad credit, you may find that you can’t get a traditional loan from an institution and may wonder what’s available. There are many options for fast business loans out there, but it is important to know what they are and what they do.
Merchant Cash Advance (MCA)
A merchant cash advance is a different loan option that pays the entire amount of the loan in one sum. It is provided to companies that may need a loan without having to wait or that have a poor score and cannot get funding from traditional methods. The payback is a little different because you will agree to use a portion of your credit/debit card sales to pay off the loan. This option works well for businesses that have a lot of debit card sales each month. However, interest rates can be higher, so use caution.
Microloan
A microloan is offered by many non-profit organizations, and they grant a small loan to minorities and women to help them start a new company. The funds can be up to $50,000 and can also be used to help businesses in particular zones. While nonprofit organizations make up the most options for this loan, the SBA also offers a microloan program. These are an excellent choice for many companies because the requirements concerning scores are more lenient.
Company Credit/Debit Card
Though many companies may find it difficult or impossible to get a credit/debit card issued to them, many lenders are willing to offer a small line, which can help you get the things you need. However, with a poor score rating, you may not be offered a lot to start. However, it is an excellent way to build up your score over time, allowing you to get a bigger line open to you and be available for other loan options.
Building Up Your Score
To increase your score so you have a better rating and can apply for other loan options, you should pay bills on time, use plastic money sparingly and check your score reports periodically to ensure that everything is correct. There are many options available to check your report and can show you your history, public records, and other information.
If you need fast business loans and have bad credit, you still have options. Visit Biz4Loans today or call at (888) 943-1497 to find out what those options are and to start the process now.
