Poor Credit Business Loans

by Gray Peters

It takes money to get a business off the ground. How much money? Well, usually more than you think…and more than most banks are willing to lend you. It sounds a little harsh, but if you’re looking for startup capital, bank loans can be a very tough route to financing. Some would say impossible. If you’ve damaged your credit at some point, it’s going to be very very hard to get poor credit business loans.

So, the first thing I’d say about this subject is that if you’re looking for business loans for poor credit, open your wallet and look at Mr. Visa, Mr. Mastercard, and Mr. American Express. Credit cards are really the only poor credit business loan I know of.

Now, if you already have a business up and running – and it has consistent sales – you might have a slightly better shot. Banks are much more amenable to the idea of lending money to a business to help it grow (as opposed to lending for the purpose of getting it started). So, if you have a year or more of sales data, and you can show other factors that will give your business a further sales boost (like a new website or a recently launched direct marketing campaign), it’s possible you’ll get a loan in spite of your credit.

I recently learned about another alternative to business loans for poor credit; they’re called cash advances for business and you qualify for them strictly on the basis of your sales credit card receipts. In other words, when you go to apply for this cash advance, all the lender will want to see is several months’ worth of credit card receipts from your business, and then they’ll basically lend you money against your future sales.

The rates and terms on these cash advances can be a little steep, so you have to ask yourself how bad you need the cash, and how much it will really help your business grow. If this small cash infusion is the last obstacle between you and a growth spurt, I say go for it.

No Comments

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment