Apr 21 2016
Options for Business Cash Advances for bad credit scores
Why take a business cash advance?
Having a business model in mind is just the single step to create a successful business. Along with a foolproof plan, you also need to take care of the finances that will be involved in starting up the business. If you have a low credit score there will be some difficulties in availing a business cash advance. In this section we will take a look at the various ways you can secure a business loan so that you can fund your business model.
Reality about Business Cash Advance:
Statistics reveal that most businesses get their cash flow from other sources other than the orthodox sources like banks that rely on credit score. The statistics show that only 25% of the seed fund comes from sources like banks that need a decent credit score. This implies that 75% of the other amount comes from sources that do not need a credit score to get a loan. Most of these sources charge a higher rate of interest to the customers because of the insecurity since you have a poor credit score. If you are comfortable with the interest rates you can proceed with the loan.
Business cash advance from Relatives and Friends:
If you are in need of a business loan for your business you can turn to your family or friends with this demand. This way you will be free from huge interest rates and your tenure will be relaxed. Make sure you do not take this situation lightly. While taking a business cash advance from your family or friends make sure that you show them a plan where you make a decent profit to repay them in the coming years. Never paint a rosy picture to the lender. Always make sure that you stick to reality.
You can also take a look at the microloans that fill the internet. These plans are best suited for people with a low credit score. You can make complete use of these plans to satiate your needs. These plans come in a range of $5000-$25,000. These plans are best suited to increase your credit score over the period of time if you repay these loans. Before availing these business cash advance you need to make sure that you compare these rates of interests.
You can also take advantage of the ‘gifts’ various people can provide to you to reduce your burden. If you are careful, you will be able to increase your finances without increasing your interest rates. You can take business cash advances from friends or relatives without increasing your interest rates. This can be done by taking this money in the form of ‘gifts’
These are some of the ways in which you can avail business cash advances from other sources without need for a good credit score. These paths are well designed to help you with your business plan. You can also come up with other ways to fund your business cash advances through brainstorming.