Business and personal credit are extremely important to monitor. Getting a business loan will depend largely on this one factor. A bad credit score can cost you thousands and thousands of dollars, yet in the United States, it's widely unmonitored. Your actual credit score is a mathematical description of how good you are at paying back your creditors.
For business owners, it's not possible for a credit score to directly reflect the success of the business itself. What we're left with is a group of businesses and individuals who have solid businesses, but no credit. These business owners need small business loans to help grow, expand into new markets, hire new employees, etc., but they can't because they don't usually qualify for traditional funding.
This is a problem not only for those particular businesses, but for the economy. America counts on these very small businesses to bolster the economy. Their spending and the creation of jobs serve great functions.
If you have bad credit but would still like to be considered for a small business loan, you are in luck. A typical alternative to a traditional small business loan is known as a merchant cash advance. Usually, the only credit requirement is that the applicant isn't in open bankruptcy. Even scores as low as 500 can be approved for funding (and believe me, you have to try pretty hard to have a credit score under 500).
These programs are technically a purchase and sale of receivables rather than a business loan agreement. You will sell a fixed amount of your business's future revenue, let's use $10,000 as an example. Of course, you would be paid for that sale, up front, in the form of an advance maybe in the amount of $8,500 or so. Payments ebb and flow with your business, which makes repayment rather painless. You end up paying it back without even knowing it.
For business owners, it's not possible for a credit score to directly reflect the success of the business itself. What we're left with is a group of businesses and individuals who have solid businesses, but no credit. These business owners need small business loans to help grow, expand into new markets, hire new employees, etc., but they can't because they don't usually qualify for traditional funding.
This is a problem not only for those particular businesses, but for the economy. America counts on these very small businesses to bolster the economy. Their spending and the creation of jobs serve great functions.
If you have bad credit but would still like to be considered for a small business loan, you are in luck. A typical alternative to a traditional small business loan is known as a merchant cash advance. Usually, the only credit requirement is that the applicant isn't in open bankruptcy. Even scores as low as 500 can be approved for funding (and believe me, you have to try pretty hard to have a credit score under 500).
These programs are technically a purchase and sale of receivables rather than a business loan agreement. You will sell a fixed amount of your business's future revenue, let's use $10,000 as an example. Of course, you would be paid for that sale, up front, in the form of an advance maybe in the amount of $8,500 or so. Payments ebb and flow with your business, which makes repayment rather painless. You end up paying it back without even knowing it.
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