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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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