With Low Sales, it Can Be Hard to Get Funding, so Turn to the Best Online Lenders for Low Average Monthly Sales
There are several online money lenders but only some of them will provide a loan if your business has low average monthly sales. Qualifications including annual revenue and time in business requirements can vary. Personal credit score requirements can as well. Here are the details.
Best Online Lenders for Low Average Monthly Sales: Background
We researched all of these lenders and asked about their programs, rates, terms, and features.
We gave them all every opportunity to add to and enhance our research. Rates can rise and fall; this is normal when it comes to financing.
Only QuarterSpot confirmed our research. We suggest you investigate every online lender which interests you to confirm our numbers before requesting funding. Lenders do come and go in this space, and they sometimes merge or change names.
Best Online Lenders for Low Average Monthly Sales: Balboa Capital
There is a time in business requirement of at least one year. Another requirement is $300,000 or more in annual revenue. Balboa Capital asks for your personal credit score.
Balboa Capital also provides business cash advances. And they will advance $5,000 to $250,000. Get 3 – 18 month terms.
No collateral needed. There is a time in business requirement of at least one year. Another requirement is $10,000 or more in monthly credit card and debit card deposits.
One advantage is the size of their business cash advances and how you don’t need collateral to get such an advance. A very big disadvantage is that their fees are not listed on their website. Decide whether this apparent lack of transparency is an issue for you.
Best Online Lenders for Low Average Monthly Sales: Credibly
Credibly is an emerging Fintech platform. Credibly can provide $5,000 to up to $250,000 in small business funding; this is for working capital or for small business expansion.
You must in business for at least 6 months. You must have at least $15,000 in monthly revenue. Credibly will want to read and review your company’s most recent 3 months’ worth of bank statements. You need a personal credit score of at least 500.
There is a 2.5% origination fee. Rates start at 9.99% and go up to 30.00%. Funding is within 48 hours.
Credibly will pull your personal credit and hence his will impact your personal credit score. Credibly also wants a personal guarantee. They also want you to provide collateral for funding. Credibly is going to place a lien on your business if you cannot.
Advantages include a short time in business requirement. Disadvantage/wild card is that the company is fairly new (since 2010). Plus Credibly is in Fintech, an umbrella term which includes blockchain and crypto currencies.
Hence their model could change radically in short order as this technology continues to improve.
Best Online Lenders for Low Average Monthly Sales: QuarterSpot
In 2021, QuarterSpot was bought out by Lendio, so any lending will be through their new ownership.
Best Online Lenders for Low Average Monthly Sales: Overall Observations
Getting funding with fairly low average monthly sales is not easy. Here are some pros and cons.
The highest loan amounts are $250,000 from either Balboa or Credibly. Credibly seems to have the lowest rates and also the shortest time in business requirement: 6 months.
Companies with low average monthly sales may do better to wait and see if they can increase their sales before applying for funding.
Many online lenders have an annual revenues requirement instead, so being in business for at least a year will start to show those sorts of numbers to potential lenders.
For initial short term funding, particularly if a company does not need a lot of money, a microlender might be a better option.
The Best Online Lenders for Low Average Monthly Sales Can Help Your Business Keep Going
As with all funding sources, make sure to read the fine print carefully. Your own individual requirements and needs are most important when determining where to get business funding.