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Category Archives for Business Funding

Accounts Receivable Financing and Purchase Order for Individuals with Bad Credit

We have gone through 5 different business loans you can use with bad personal credit. Including Revenue-Based Lending, Merchant Cash Advances, 401K financing, and more.

The last 2 types of small business loans that may work for you are Purchase Order and Accounts Receivable Financing.

Accounts Receivable Financing

Most major companies including Fortune 500 companies utilize some form of Accounts Receivable (AR) financing. But you don’t have to be a Fortune 500 company to access this funding program. You can get AR financing even with bad personal credit.

With AR financing, you use the receivables you have with other businesses or the government as collateral to qualify for financing.

Also with AR financing, you can get advanced as much as 80% to 95% of your receivables within as little as 24 hours. As soon as your receivables are paid by those who owe you, the funds are released to you minus the lender’s fees.

Personal credit as well as other cash flow or collateral requirements are non-factors in qualification, because personal and business financials are not even reviewed during the qualification process. 

If you have receivables with another business or the government, you can be approved. Most rates are less than 2% of the receivables that you have outstanding. You can be approved for between $10,000 and $20 million, depending on the value of your receivables. 

This program can be a real lifesaver to free up cash flow for many different types of businesses. A doctor’s office for example, can get immediate funding on payments from Medicare, Medicaid, and insurance companies using this program that they often need to wait weeks or months for. 

The same is true with construction companies, factories, and other industries that are often hired to provide products and services; when they must produce and then wait to get paid.

REQUIRED TO QUALIFY: Account receivables with the government or another business

LOAN AMOUNTS: $10,000 – $1,000,000

Purchase Order Financing

Purchase Order (PO) Financing is very easy to qualify for as you won’t need financials or good credit to get approved. For approval, lenders will typically do a quick review of your outstanding purchase orders that need filling. 

If the purchase orders are valid and the suppliers you are dealing with are credible, you can be approved regardless of personal credit history. You can obtain financing for up to 95% of the value of your purchase orders. And rates are typically less than 4%.

PO financing uses your purchase orders as collateral for funding. There are a few different types of PO Financing currently available to help businesses. So, you can qualify for PO financing even with horrible personal credit. With PO financing the lender will collect on the outstanding purchase orders for the business saving them both time and money. 

Sometimes you might have large orders to fill but don’t have or want to use your cash flow to pay for the supplies needed to fulfill those orders. PO financing is a short-term finance option that provides capital so you can pay your suppliers upfront, so your company doesn’t have to deplete its cash reserves. 

REQUIRED TO QUALIFY: Purchase orders totaling $10,000+

LOAN AMOUNTS: $10,000 – $1,000,000

As you can see there is no shortage of money only a shortage of knowledge of where it is and how to find it. These seven small business loans for folks with bad credit can be the difference maker between either going out of business or growing and building a thriving successful small business. For more information on how you can obtain these types of financing as well as get help for your business even if you have poor personal credit, contact me today at 888-524-9273 and schedule a 30-minute free consultation.

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401K Financing and Securities-Based Financing for Individuals with Bad Credit

We’ve gone through Revenue-Based Lending and Merchant Cash Advances, but that may not be the right type of business loans for you.

Maybe you have a 401K or a Security Based Asset? See how you can use both to obtain a business loan.

401K Financing

If you have a 401K, you may qualify for 401K financing. This is financing that you can obtain where you use your 401K as collateral. You can borrow as much as 100% of the value of your 401K and in some cases up to 200%. And approvals are not based off of your personal credit or cash flow.

With 401K financing you can save thousands of dollars in interest and fees plus protect your personal credit. With 401K financing, you can obtain business financing for up to 200% of the value of what is in your 401K. This can help to lower your business’s overhead while aggressively growing your retirement account at the same time. You can literally leverage your 401K to expand your business.

Don’t confuse 401K financing with borrowing from your 401K through your company’s HR department. The IRS allows you to borrow up to half of your 401K’s value not to exceed $50K in any given year. That amount must be paid back at the prime rate with every paycheck. Many people use this as an excellent option to get some quick cash. 

The 401K financing strategy is approved by the IRS, which means there’s no tax penalties when you get funded. Interest rates are usually under 5%. And best of all, you keep your 401K money where it is, invested and continuing to earn interest, all while you still get a 401K financing loan. No other collateral or any cash flow is required for approval. 

This program works great for startup businesses that find it difficult to qualify for business loans due to a lack of time in business. And even if you don’t have a 401K, you might have family members, friends, partners, or other investors who may want to supply their 401K as collateral in exchange for equity in your business. 

This is a great low-rate, low payment, funding option that you can obtain for your small business without a personal credit check or monthly revenue that is perfect for helping you as well as others safely invest in your company.

REQUIRED TO QUALIFY: 401K with a value of $10,000+

LOAN AMOUNTS: $10,000 – $1,000,000

Securities-Based Financing

Securities-Based Loans are a great option for many business owners with limited or undocumented income. This program is very similar to 401k financing. 

With securities-based financing you can acquire financing for up to 90% of the value of your stocks or bonds with rates as low as 5%. Your stocks are used as collateral; however, you still earn interest on your investments because you still retain ownership of your stocks or bonds in your name. And you keep 100% of your stock’s or bond’s appreciation.

There are no personal credit checks, no tax penalties, no pre-payment penalties or other collateral or cash flow requirements for qualification. As long as your stocks or bonds qualify, you can get a securities-based loan, even as a startup business. Fortunately, most stocks and bonds are accepted for this program.

Securities Based Loans are non-recourse and non-recorded loans where the borrower retains full beneficial interest. Non-recourse means the lender cannot come after you personally in the event of non-payment. 

Securities-based lending generally involves a revolving line of credit that is secured by your eligible investment portfolio as collateral. At the end of Securities Based loan periods, the borrower receives back the same number of shares originally pledged as collateral. Securities-Based Loans funds may be used for virtually any purpose that you can think of to build and grow your business. This is a wonderful way for you or even for others to invest in your business. 

REQUIRED TO QUALIFY: Stocks or bonds with a value of $10,000+

LOAN AMOUNTS: $10,000 – $1,000,000

We’d love to help you grow cashflow for you business, and establish business credit, even without your SSN, this year. Schedule a time with us today at: calendly.com/bizcred/consult

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Revenue-Based Lending and Revenue-Based Credit Lines for Individuals with Bad Credit

When bad credit has you down and the banks won’t lend to your business, then it’s time to think outside the bank. The banks don’t want you to learn about the hundreds of thousands of dollars available to your business right now- even if you have bad credit.

You only need to know where to look. I’ve helped hundreds of clients find money when they thought they were completely out of options. I’ve put together a list of the seven best small business loans for folks with bad credit.

I’ve separated the 7 small business loans into four parts. Here is part 1 of 4.

Revenue-Based Lending

Most business owners are not familiar with Business Revenue lending. However, this is the fastest, and easiest type of business financing you can get approved for. Even with a credit score as low as 500 you can get funded quickly, with no cumbersome document requests and reviews. 

If you manage your bank account responsibly and have consistent monthly revenue, then you can be approved. With revenue lending, even if your revenue goes down, then your payment also goes down proportionally. This can be extremely helpful for seasonal industries. Revenue financing focuses only on the business’s revenue to get you approved for funding.

Some loan sharks would have you sell them a percentage of your company for a small loan. Instead of selling ownership in your company, with revenue-based capital, you keep full ownership of your business but sell the rights to a portion of your company’s future revenue. 

You are basically selling your future revenue for a discount, or fee. The fee can be as low as 8%, or as high as 45% depending on your risk. You won’t need collateral for approval. Lenders will usually withdraw money daily from your bank account. But weekly and monthly paybacks are also available.

If your business has $10,000 of monthly revenue or more, then your business might qualify for revenue lending. You can be approved by simply providing 6 months of bank statements for review. Typically, you can get approved and get your money in 72 hours or less.

Lending sources will want to see that you’ve been in business for at least one year. If, however, you’ve been in business less than one year or have less than $10,000 in monthly revenue, you still might be able to get approved, if you have compensating factors such as good credit or collateral. 

REQUIRED TO QUALIFY: Consistent cash flow

LOAN AMOUNTS: $5,000 – $500,000

Revenue-Based Credit Lines

Some lenders are now issuing revenue credit lines on top of their normal loans. This is a BIG deal because this is one of the only types of true business credit lines that you can get when you don’t have good personal credit. 

If you are lower risk such as being in business for over five years, having good personal credit, or good bank account management, you might get approved for both a revenue lending deal and credit lines. 

For example: we’ve seen clients get approved for a $200,000 revenue-based loan. At the same time the lender also offers a $25,000 line of credit line to go with it, because of their lower risk due to strong business financials. 

To get approved you should be in business at least one year and have at least $10,000 in monthly revenue. You’ll also need consistent cash flow and good bank account management. This means having six or more deposits in a month and having a positive bank balance at the end of each month.

REQUIRED TO QUALIFY: Consistent cash flow 

LOAN AMOUNTS: $10,000 – $50,000

We’d love to help you grow cashflow for you business, and establish business credit, even without your SSN, this year. Schedule a time with us today at: calendly.com/bizcred/consult

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