Getting Merchant Loans With Bad Credit – Merchant Business

For businesses that have bad credit and are trying to get a loan, there is good news.There is a way to fund your business without having to go through all the rigorous requirements needed to get a bank loan. It is called a merchant loan (or merchant cash advance); it is a fast, easy way to get funding without the need for collateral and you can do so with less than perfect credit.How does a merchant loan work?Applying for a bank loan can be a stressful, time consuming task. They generally require a business plan, several months’ worth of financial records and collateral. After submitting your documents, the bank then begins the process of pouring over your records, checking facts and contacting your referrals. This process generally takes between a couple weeks to two months or more. It is not uncommon for a business that is doing well to be turned down because of discrepancies on their credit.The process of getting a merchant loan is much simpler; all you need to do is fill out a simple two page form and provide about 4-6 months of your business merchant statements. They do the rest.It is not uncommon for a business to get approved in 1 day and get cash deposited into their account in less than a week.While banks focus on your credit history; a merchant loan provider looks at your proven record of credit card sales.How to qualify for a merchant cash advanceAlmost any business can qualify for a merchant cash advance. All that most providers require for you to qualify is;
You must be the business owner and to have been in business for a least 6 months.
Your business must accept Visa and MasterCard.
Your business must process at least $2,500 in Visa/MasterCard sales each month. How much does my business qualify for?The amount of money you qualify for depends on your businesses sales. Generally; they will advance your business 2 to 3 times the amount of your monthly credit card sales. So if your business processes $10K; you will be funded $20K to $30K.How do I pay back the merchant loan?One of the unique features of a cash advance is that it uses your credit card processor to automatically deduct a fixed percentage of your daily credit card sales until your cash advance is paid back. They usually set it up so that you are paid back within 6 to 9 months.Because they use a percentage of your credit card sales; the amount you pay back changes from day to day. This creates a flexible payback schedule that works with the natural flow of your business. Meaning; you pay back less on slow days and more when it is busier.What happens if I default on the cash advance?A cash advance provider works closely with the business owner to establish a merchant loan amount and payment schedule that does not put too much burden on the business owner. The success of your business is in the best interest of everybody.If in the event your business defaults on the payback; it is usually because the business has failed. Nobody wants that to happen. When it does; nobody wins.Merchant loan providers are aware of that risk going in to the deal. Most providers offer these cash advances without collateral. That means that if you do default; they cannot come after your personal assets.In today’s economy it is becoming increasingly difficult to get a loan from the bank, even if you have good credit. They simply aren’t loaning money like they used to.It is always in your best interest to keep your options open when it comes to your business. I invite you to use the following link to lean how merchant loans can help your business prosper in difficult times.