As a small business owner, it’s understandable that you need capital from time to time. It might be to expand your business, buy new equipment or do something else. When bad credit is standing in your way, it can be hard to work with traditional banks. At Delancey Street, we have a track record of helping businesses with lines of credit, small business loans, and more. If you want a business loan without a credit check, it’s possible.
When you need money, you typically need it right away. You don’t have the time to go through a lengthy approval process. If you wait too long to find out if you can be approved, you might miss out on a particular business opportunity.
With us, we specialize in fast business loans. The approval process is quick. Plus, we can provide funding in an average of two business days. If you have bad credit, don’t fret.
Understanding Your Credit Score
Lenders want to know what your credit score is. Before you can begin to understand your creditworthiness, you need to look at what your credit score is. You should review what the contents have to say. If there are errors, you can report them to make improvements to your score.
It’s a good idea to look at your business credit score and your personal one. If you’re a newly established business, many lenders will review your personal credit score to help you.
You can work to fix your credit score. Depending on how bad it is, it could take six months to a year to see a marked improvement. Clear up delinquencies, pay on time, and avoid maxing out credit cards.
Reviewing Loan Terms
Before you sign on the dotted line of a loan agreement, review the terms. What’s the APR? Are there any hidden fees? If you don’t know what the true cost of a loan is, you could end up getting yourself into some trouble.
Get a merchant cash advance if you have bad credit
When you’re ready to apply for a merchant cash advance, you don’t have to worry so much about the credit score. Instead, focus on the needs of your business. Decide how much you need and what you plan on using the money for within your operations.
Expenses such as payroll obligations, utilities and rental agreements must be paid on time. If not, there may be serious consequences for your business.
Where can you go when you need a quick short-term cash advance for your business?
The first thing you should know is an MCA isn’t a loan. A merchant cash advance offers a way for merchants to tap into the power of their daily credit and debit card receipts. It means you can get a guaranteed business loan even with bad credit.
Benefits of Merchant Cash Advances
The best part about this type of funding is the process is quick. It isn’t uncommon for merchants to receive a funding decision and cash within a few days.
Another benefit is the eligibility requirements aren’t strict. Merchants who have poor credit can guarantee they’ll get funded, as long as the business is doing well.
Money from merchant cash advances can be used to pay for several types of business expenses. Whether you need to purchase new equipment or pay a one-time expense, an MCA can help you.
The MCA repayment process is convenient. After you receive a merchant cash advance, you don’t have to worry about sending payments to your MCA provider. After you sign your agreement, the payments can be automatically deducted from your bank account or daily credit card receipts.
How to Apply for a Merchant Cash Advance
The first step is to complete a merchant cash advance application. As you are completing the application, it’s important for you to provide accurate and complete business information.
With your application, you’ll be required to submit additional documents including a valid driver’s license, business bank statements, credit information, a voided business check, business tax returns and credit card processing statements.
After you submit these documents, the MCA provider will review your application.
What do I need to know?
Here’s the truth about merchant cash advance funding solutions. They can be an expensive way for you to obtain money for your business.
This is something you should keep in mind before you agree to a merchant cash advance. The good news is you can decrease the cost of the advance by paying it off early.
Another thing you should understand is your MCA provider will charge a factor rate for your cash advance. Your cash advance’s factor rate may be as little as 1.14 or as much as 1.48.
Here’s how a factor rate of 1.16 works on a cash advance of $30,000. The amount that you’ll have to repay for your cash advance is $34,800.
Your MCA provider will deduct a percentage of your daily (or weekly) credit and debit card receipts. This amount will be applied to repay your loan.
As a result of the deductions, the amount that you’ll receive from your business revenue will decrease. This could affect your ability to pay your other bills.