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Category Archives for Direct Funding

Merchant Cash Advances for Individuals with Bad Credit

Yesterday we talked about 2 types of loans you could use Revenue-Based Lending and Revenue-Based Credit Lines. Check out Part 1 here.

But what if those aren’t available for your business. Well here is another way to get cashflow and have bad credit. Merchant Cash Advances. . .

Merchant Cash Advances

Most business owners are not familiar with Merchant Cash Advances. Merchant Cash Advances leverage your positive credit card processing history to get you approved, and not your personal credit scores. This is a great benefit to those who don’t have good personal credit to qualify for traditional lending.

Merchant cash advances are just like revenue-based lending except the lender only looks at your merchant account sales for qualification. This means they only look at your credit card sales to determine your approval amount’ This is not like revenue-based lending where the lender looks at all your business’s cash and check deposits. This type of financing is even easier to qualify than revenue-based lending.

With a Merchant Cash Advance, the money is advanced to you based on how much you process each in credit card transactions each month. Merchant cash advance loans can be obtained up to $250,000 depending on how much you process each month in credit card transactions. With Merchant cash advances, the lender advances you money against your future credit card sales. 

You can usually get approved with only $5,000 in monthly revenue and only six months in business, whereas revenue-based lending requires at least one year in business and over $10,000 a month in revenue. 

You can get approved with a credit score as low as 500, and without any collateral. Approvals and funding can all be obtained in as little as 48 hours with a bank and merchant statement review. Rates are usually higher with merchant advances than with revenue lending, but the approval is easier.

In most cases the lending source will request that you change your merchant services processor to theirs, this merchant services processor is the company that you process your credit cards through.

REQUIRED TO QUALIFY: Consistent cash flow

LOAN AMOUNTS: $5,000 – $500,000

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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