If you’re thinking about starting a business, you probably know how important your credit score is. Potential lenders will want to see your credit history to see if you are a reliable borrower who will return the money in a timely manner. If your credit history is poor, it will affect your chances of qualifying for a traditional loan. The good news is there are plenty of other options available. Read on to find out more.
Merchant Cash Advance
This is an option for those who have lower credit scores. What’s convenient about merchant cash advances is that you pay when you can. In other words, if you end up having a great month in sales, you can pay back more of the loan that month. If, on the other hand, you have a bad month in sales, you can pay less that month. This gives you flexibility and ease of mind. However, the convenience comes at a price; interest rates can be 20-30 percent or more. But if you need cash and have a poor credit history, a cash advance may be a viable option.
Starting a new business and only need a bit of cash? The microloan is the option for you. Entrepreneurs who need $50,000 or less to get their businesses going can apply for this loan option. Importantly, individuals with lower credit scores generally have better luck with microloans than with traditional loans. Keep in mind that the interest rate for a microloan will be a bit higher than that of a traditional loan.
For those with poor credit, web-based lenders are often a good option. They are often more accommodating than traditional banks and may be more flexible in terms of a repayment schedule.
If you’re thinking about starting a business, we have all the information you need. Visit www.biz2credit.com for guidance.