Bad credit business loans are the best way to finance your business without breaking the bank. If you have a credit score below 630 and have trouble getting financed through more traditional channels, this financing option may work for you.
So let’s say that you have a poor credit history. Lenders then conceive you as a high-risk investment. That means they will charge higher interest rates and offer shorter repayment terms. All this adds to the degree of a financial burden on your already strapped cash flow.
But don’t worry! A booming industry of alternative business financing is here to help.
We offer a wide variety of financing programs based on your business needs. All you have to do is find the best option so that you can make timely repayments.
Bad credit business loans are a creative way to stay afloat and grow your worth during those tough phases of business. Read on to find out which business financing program is ideal to meet your funding requirements:
1. Equipment Financing
Most small and medium businesses looking to expand have a hard time finding loans for capital investment. Equipment financing is the perfect solution to fund your equipment without straining your finances.
So how exactly does equipment financing work?
Well, it’s somewhat similar to a car loan. You get an equipment loan to buy the equipment you need to expand your business. Then, this same equipment acts as collateral for the equipment loan.
Having a guarantee means the lenders will be less bothered by your bad credit score. Thus, this makes it a viable option for business owners with bad credit scores.
Once you repay the loan, you own the vehicle. Many business owners prefer this option for equipment renting and leasing. And since there is collateral, it involves low risk for business financing companies.
All you have to do is get customized bad credit business loans equipment financing programs based on your industry.
2. Bad Credit Business Loans Factoring
Small and medium-sized businesses often face cash crunches due to long debt repayment periods.
One of the best ways to get instant cash is factoring. Also known as invoice financing, accounts receivable financing or purchase order financing these loans help businesses improve cash flow, pay employees and suppliers, and reinvest in operations.
Here, the lender gives you advance cash against your outstanding invoices, accounts receivables, and purchase orders. The invoices act as security for the money advanced, which significantly lowers the credit risk. Thus, it is a lot easier to obtain business financing even if you have a bad credit score.
With invoice factoring, the lender may give you a cash advance of up to 85% of the invoice amount. This is a great way to infuse capital into your business versus waiting to be paid by your customers which could take anywhere from 30, 60 or 90 days. Once your customer makes full payment against the invoice, the lender will deduct a processing fee and any other charge from the balance and pay you the rest. You may find this as the perfect financing solution for startups, rapidly expanding set-ups, and companies seeking bad credit business loans.
3. Business Cash Advances
This is the most hassle-free business financing program. Business owners can get business cash advances without the need to offer any collateral property. Furthermore, you are also not restricted to a strict repayment schedule. Doesn’t that sound great? The lending company takes a percentage of your future credit card sale receipts. Although it is a great way to finance your business, it can prove expensive and also impact your cash flow. Small companies should practice caution here.
4. Line of Credit
Business owners need to prepare for all kinds of
It is a short-term working capital loan that usually comes with a revolving credit limit. Revolving credit is a type of credit that can be used repeatedly up to a certain limit as long as the account is open and payments are made on time. For business owners seeking bad credit business loans, this is a great way to sustain your business. All you have to do is apply online and get pre-approval for a line of credit.
5. Business Loans
Bad credit business loans offer an anchor of hope to business owners who have a credit score as low as 500. These short-term business loans usually have terms ranging from 12 months to 36 months.
There is a wide variety of business loan programs to choose from. Our unique business loans are available to borrowers with bad credit and even those who don’t have any collateral or real estate to offer. It’s a great way to get your business back on its feet in no time.
6. Commercial Truck, Vehicle and Trailer Title Loans
If you need business finance and have a commercial vehicle, don’t worry. We help you unlock the equity in your vehicle or trailer by providing a business loan against your commercial vehicle title. All you need is a single title to meet your business needs.
Want Bad Credit Business Loans? Consult First Capital Business Finance Today!
First Capital Business Finance offers financing solutions for small and medium-sized businesses. Our experienced financial consultants help you find the perfect financing program based on your requirements.
Apply online and get pre-qualified for bad credit business loans within a day. For more information, call 888-565-6692 or contact us below.
Bad Credit Business Loans that Won’t Break the Bank | First Capital Business Finance – Tustin, CA