How to Get Funding for Your Business When You Have Bad Credit
Sadly, many business owners with bad credit struggle to find adequate funding for their businesses, even if their companies are thriving by every other metric. If you find yourself in this position, here are three steps you can take toward finding a business funding partner today:
1. Do your research on financial products that are bad-credit-friendly.
As a small business funder, we’re often asked what financial products are viable options for businesses with poor or recovering credit. Some products that come to mind are Merchant Cash Advances (our product/specialty!), equipment financing, invoice factoring, business line of credit, and even credit cards in some cases. With our product, the Merchant Cash Advance, we don’t even pull credit –soft or hard– during our application process. We believe a company’s success lies in their current performance, so we don’t think it’s necessary to go poking around in your past. We simply review recent bank statements to ensure your business meets our monthly deposit minimum. Easy enough, right?2. Find some direct funding companies that offer those products.
When you apply with a direct funder, you are dealing with the company that is making you a funding offer without going through a middleman. These middlemen can be referred to as brokers, ISOs (Independent Sales Organizations), or referral partners, but they all essentially operate in the same way; they connect with your business, shop your request out to various funding companies, and collect a commission when you accept funds from a direct funder. Direct funders can get you the best rates possible without needing to pay for the middleman as well. Plus, establishing a payment history and relationship with a direct funder will benefit you in the long run should you require more funding in the future.
3. Research those companies and their reviews.
This should go without saying, but you should only trust funding companies that are highly credible and well-regarded. Take the time to read through the funder’s website and check out their online reviews on third-party sites such as Google or Trustpilot. Ensure that you would definitely want to work with that company before you apply. This simple practice can save you a lot of trouble in the end, especially since there are some bad players out there who may try to take advantage of business owners with a history of poor credit.
If your business needs funding now and you’re interested in learning more about our Merchant Cash Advance products, please click here to send us an inquiry. One of our customer care representatives will get back in contact with you as soon as they’re available.
______________
Revenue-Based Finance is formerly and alternatively known as Merchant Cash Advance, or MCA.
Previous Post
Next Post