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Tag: small business funding

Know About Bad Credit Business Loan

Based on bank lending practices, one might be misled to believe that people with a bad credit history is not capable of running a successful business, it is not possible to repay business loans and overall risk borrowers. But the truth of the matter is; have bad credit does not make a person is not able to run a profitable business.

There are many reasons why a person may have a low credit score that may have nothing to do with their money management skills. This includes having an obscene amount of student loans to repay after graduation before getting a job that can support their payment, and get caught up in the lure of credit cards as a young adult and have to pay for it later.  You can check this out if you are looking for bad credit business loans.

The question remains: Is there any hope for business owners who have a poor personal credit history? Is there a way to get a bad credit business loan?

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The answer is yes. Through the business cash advance, a business owner can get a loan for his efforts / even if he/she has bad credit. This is because business cash advance lender takes the strain off payments from the borrower, making business responsible for paying back the loan.

How does this work? A business cash advance is a purchase of future credit card sales business. Business cash advance companies provide upfront cash payment in exchange for a small percentage of the sale of the credit card business makes until the loan is completely paid off. Therefore, having bad credit is not a disqualifying factor when it comes to receiving a business cash advance.

Business cash advance repayment does not affect the credit score of the borrower. So the borrower does not have to worry about the deterioration of his / her credit score when receiving a business cash advance.

Comparison Of Business Cash Advance With Traditional Loans

Obtaining a business cash advance loan can give you more benefits than a traditional bank loan. The following are the two reasons why small business owners should get an MCA for a bank loan.

Faster funding

Bank lending can take months to get money. Moreover, it is very unlikely that the loan will be approved, not to mention all the required documents. You can check various online sites for more information about business cash advance loans.

However, with a prepaid loan, the waiting process takes less than a week. If your application is approved, the money will be transferred to your credit card within 48 hours.

This is one reason why you prefer a deposit instead of a bank loan. Rapid funding is also needed. That's why they do not make you wait too long to give money.

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The payment process is safe

The MCA procedure of payment is by credit card processing. The amount is based on your credit card sales per day. The supplier pays each month until the deposit is paid an agreed percentage of the sales of your company.

Unlike banks, no guarantees, interests, and personal guarantees are required. MCA providers will not take legal action against your business if the payment process takes too long.

The amount of payment is very flexible and does not warrant the risk for you. This type of business financing applies to every type of business.

In addition, you do not have to have a good credit score to use a deposit. Your landlord of the rental one-year warranty and submission of all your credit card transaction records are just two simple requirements necessary to receive an advance for sales of credit cards.