SunWise Capital 2018: Small Business Short Term Loan Approval and Processing
Small businesses are also relying on loans to survive the everyday challenges that come along the way, but small business owners loan applications are declined or denied by lenders if they have a poor credit. You probably have experienced being denied for a loan application because of a poor credit due to improper management of your finances in the past, but it should not be a hindrance for you not to get the financial help you need. The good news is that it is possible to secure a small business loan even if you have a poor credit. There are many alternative lending agencies or lenders offering great loan solutions for those with bad credit scores today. Instead of focusing entirely on your credit score, these types of lenders give utmost value to the operating history and the business’ strengths.
It is important to be able to show your lender that you have a solid business plan and detailed financial projections because the worse your credit is, the higher they perceive risk. Your options may include microloan, merchant cash advance, business credit card, home equity line of credit, revenue-based loans, or borrowing from family and friends. With a microloan, a small business owner can borrow up to a maximum of $50,000, easier to apply and get approved, and this type of loan is usually offered by alternative lenders such as credit unions. The credit requirements for microloans are lower. On the other hand, a merchant cash advance is also referred to as a business card cash advance, which is applicable for those with cash flow issues and needing $10,000 or less. Always make sure to pay your cash advance on time because this is a type of loan that has high-interest rates, and you may end paying more over time than what you initially borrowed.
It is possible to secure a credit card under your business name and make purchases, making sure you pay on-time and begin building a good business credit at the same time. Remember that credit unions and banks may have different eligibility requirements, and there are also varying interest rates, credit limits, and terms of payment. House equity loan refers to putting up your property as a collateral to secure a small business bank loan. You have the option to get a revenue-based loan if you have a business credit of over 550, making more than $100,000 sales a year, and your loan amount should not exceed 10% of your total revenue. It is best to get a loan from lending agencies or companies than borrow from your friends or family because you don’t want your personal relationship compromised because of money matters.
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