In this economy, it is not very easy for people to get a business loan. Banks have very strict criteria lately.. This has made it next to impossible for your average business owner to qualify for a small business loan. For example, a lot of banks require that you have a credit score above 700 just to make an application. That is very unrealistic. In fact, a big majority of business owners have credit scores at or around 600.
That's not the only thing that is making it really tough for people to get small business loans. Another thing that kills a lot of business funding applications is "time in business." A lot of banks like to see applicants who are in business for more than 3 years. As you'd guess, 3 years is not common among business loan applicants. And even if you were able to get past the 700 credit rating and you have been in business for 3 years, chances are they don't have the collateral that they're going to look for, or that you'll have to personally guarantee repayment of the loan. The economy is rather scary, I can not imagine personally guaranteeing a loan right now. And then of course even if you can get by on all of these criteria, you'll need to submit mountains of paperwork to the bank underwriters and then wait several weeks, or months even, before you hear back about it.
The merchant cash advance program has taken care of a lot of these issues when it comes to getting working capital. Business cash advance programs are making it easier for small business owners to secure capital in this tough economy. The prerequisites are considerably less strict. In fact, many business cash advance providers don't even have a minimum credit score. Any many of them will fund businesses that are only in business for 3 to 6 months. Lastly, funding is fast. If you submit your application and paperwork on a Monday, there's a chance that you can receive your business cash advance by the end of the week.
They never take any collateral, and you never have to personally guarantee repayment. Since most business cash advances are paid back by withholding a certain percentage of your settlements, all you really need to do is continue to process credit cards like usual. This percentage-based payback is the most common method, but there are several other options if you cannot switch your merchant processor for whatever reason.
These factors all play into why business cash advances have become so popular in the past several years. These programs have worked out very well for the majority of business people that they don't even try to get a business loan from the bank. They just apply for a merchant cash advance first.
That's not the only thing that is making it really tough for people to get small business loans. Another thing that kills a lot of business funding applications is "time in business." A lot of banks like to see applicants who are in business for more than 3 years. As you'd guess, 3 years is not common among business loan applicants. And even if you were able to get past the 700 credit rating and you have been in business for 3 years, chances are they don't have the collateral that they're going to look for, or that you'll have to personally guarantee repayment of the loan. The economy is rather scary, I can not imagine personally guaranteeing a loan right now. And then of course even if you can get by on all of these criteria, you'll need to submit mountains of paperwork to the bank underwriters and then wait several weeks, or months even, before you hear back about it.
The merchant cash advance program has taken care of a lot of these issues when it comes to getting working capital. Business cash advance programs are making it easier for small business owners to secure capital in this tough economy. The prerequisites are considerably less strict. In fact, many business cash advance providers don't even have a minimum credit score. Any many of them will fund businesses that are only in business for 3 to 6 months. Lastly, funding is fast. If you submit your application and paperwork on a Monday, there's a chance that you can receive your business cash advance by the end of the week.
They never take any collateral, and you never have to personally guarantee repayment. Since most business cash advances are paid back by withholding a certain percentage of your settlements, all you really need to do is continue to process credit cards like usual. This percentage-based payback is the most common method, but there are several other options if you cannot switch your merchant processor for whatever reason.
These factors all play into why business cash advances have become so popular in the past several years. These programs have worked out very well for the majority of business people that they don't even try to get a business loan from the bank. They just apply for a merchant cash advance first.
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If you have had trouble getting a business loan in the past, you'll want to give the merchant cash advance some thought. You won't have to put up any collateral, plus they're faster and easier to qualify for. Small Business Loan Options can help you with both at the same time.
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