Published By Janet Gershen-Siegel at August 13th, 2020
Are you looking for a merchant cash advance bad credit notwithstanding? A merchant cash advance is a way to get money for your business quickly. You do so by borrowing against your future credit card sales. Because your personal credit score does not matter, you really can get a merchant cash advance bad credit or any kind of credit.
One thing about a merchant cash advance bad credit is that it is probably not going to be helpful during an economic downturn. They may even be impossible to get during a recession. But in a better economy, they are a proven way to fund a business and keep your doors open.
These loans use your past and current credit card history to determine how much financing you can get approval for.
Money is advanced to you. The amount has a basis in how much you process each month in credit card transactions.
A small portion of each future credit card sale goes towards paying back the merchant advance loan. It does not interfere with your cash and check receipts.
There are no fixed repayment amounts or terms for merchant cash and capital. So this gives flexibility to your business if you are having a slow month.
One of the best benefits of merchant advances is you can get money in your bank account. So you can get it as soon as 24 hours after approval.
The chief benefit of a merchant cash advance bad credit is you do not have to have good credit to qualify. These loans leverage your positive credit card processing history to get you approval, not your credit scores.
There are some credit score restrictions, but in most cases, you can get approval with even below average personal credit scores.
And there is no personal guarantee necessary. Plus, no collateral is necessary.
You can get merchant loans for up to $150,000. How much you process in credit card transactions each month will determine how much you will get approval for.
So, every business has its strengths and weaknesses.
Do you use credit cards as a payment source for your clients? If so, then a merchant advance can be the perfect way for you to get a lot of money in a short period of time.
These loans are available for businesses that process as low as $3,500 monthly in credit card transactions. So the more you process, the higher advance loan you will get approval for.
So there are no application fees and there are no out of pocket costs for merchant cash advance relief.
And you can use the funds for payroll, marketing, or to increase business inventory. Get a loan to pay taxes, pay rent, or for advertising. So, try a loan to order supplies and equipment. Or you can expand your business and open an additional location. Or you can use the funds for working capital.
Company credit is credit in a small business’s name. It doesn’t link to an entrepreneur’s personal credit, not even if the owner is a sole proprietor and the only employee of the company.
As a result, an entrepreneur’s business and personal credit scores can be quite different.
Because small business credit is distinct from consumer, it helps to protect a business owner’s personal assets, in the event of litigation or business bankruptcy.
Also, with two distinct credit scores, a business owner can get two different cards from the same vendor. This effectively doubles buying power.
Another benefit is that even startup businesses can do this. Visiting a bank for a business loan can be a recipe for frustration. But building company credit, when done right, is a plan for success.
Consumer credit scores depend upon payments but also additional considerations like credit usage percentages.
But for business credit, the scores actually merely hinge on if a company pays its debts on time.
Merchant cash advances are a creative way to leverage future sales. They can help your business get past a financial hurdle. And don’t forget about building company credit! Because even when business cash advances are hard to get, you can build business credit. And your merchant cash advance bad credit could even be enhanced by business credit.