Are You Trying to Get a Business Loan with Bad Credit? A Credit Card Advance can Help

If you’ve been paying the slightest bit of attention to the news lately, you will have heard about how the current economic situation has affected our financial institutions lending practices. Getting a loan has gotten considerably harder than it used to be, even with all of the tax payers money being pumped into the financial system.

Getting a business loan is difficult even when your credit is good. Imagine how difficult it is if your credit is bad. It is almost impossible unless you have a considerable amount of equity to use as collateral. Unfortunately, many of us do not have those kinds of resources.

So what does a small business owner do if he or she finds themselves in a position where they need money or else risk losing their business? Maybe they just want to invest money into their business to help them become more competitive in a sluggish economy. Regardless of their reasons for needing a loan; if they can’t get one, what other options are available to them?

There is one option that many business owners are not aware of. One of their greatest untapped potentials for acquiring cash is in their future, unprocessed credit card sales. Referred to as a merchant cash advance or credit card advance, a business owner can use their future credit card sales to get working capital without collateral and without the need to go to a bank.

How a credit card advance works

Rather than depending on your credit score as the basis for loan approval; a merchant cash advance uses your proven track record of credit card purchases as the determining factor for your cash advance. A typical business is qualified for about 2.5 times their monthly credit card sales. In other words; if your monthly credit cards sales are $10K, you would be eligible for about $25K. You need to understand that this is just a rough outline. Each business is different. There are many other factors involved when determining the amount of a merchant loan.

Paying back the merchant loan

In order to qualify for a merchant cash advance; your credit card processor needs to be set up to automatically deduct a small percentage of your Visa/MasterCard sales each time you batch out. By using a percentage of your daily credit card sales rather than a set monthly payment; it creates a flexible payment schedule where you pay back less when sales are slow. This flexible payment schedule goes with the natural flow of your business, ensuring a successful payback.

A merchant loan provider will never advance a business more than they can comfortably afford. Your success is in everyone’s best interest.

How can a business use their credit card advance?

Unlike most bank loans; there are no restrictions on how you spend your money. You can use it to;

• Catch up on outstanding debt
• Pay for repairs or upgrades
• Purchase new inventory
• Expand your marketing efforts
• Relocate, expand or remodel your current location
• Buy out your business partners

Benefits of a credit card advance when compared to a bank loan

There are many advantages to receiving a merchant loan. Not least of which you can actually get funded even after the banks have turned you down. Other advantages include;

• A 95% approval rate
• Good credit or collateral are not required
• Approval takes 24 to 48 hours in most cases
• Generally, The entire process takes about 7 days for your advance to be deposited into your bank account
• You are free to spend the money as you see fit
• Flexible payback schedule
• No UCC-1 filing
• The application process is very simple compared to bank loans
• There are no application fees

If you need working capital and have been turned down by the bank; there are other options available. You owe it to yourself and your business to learn about these other options. You can use the link below to receive a free quote or to learn more about what a credit card advance can do for your business.

More about Credit Card Advances
Get a free quote or simply find out more about how a credit card advance can help your small business