Bad Credit Business Loan Broker
Bad Credit Business Financing
As it is, finding financing for a small business is difficult enough. Finding a small business loan when you have bad credit can be a daunting task.]Fact is, a bank isnt likely to lend to a small business owner unless their credit is above 650. On top http://nextlevelfunding.com/business-loans-bad-credit/ of that the traditional commercial banks will require a down payment (or equity injection) of anywhere between 10-40% depending on risk.For many business owners these criteria are impossible to meet. Are there funding options available for small business owners who dont qualify for conventional business loans? The answer: yes.[/vc_column_text][/vc_column][/vc_row]
Alternative Bad Credit Business Financing
Mid Prime alternative small business loans provide financing for businesses that dont quite have the credit to get traditional bank financing. Whereas most banks (and SBA lenders) require the small business owners have credit scores north of 650 to get a business loan, a mid prime lender usually has a minimum requirement of 600.
On top of that, most traditional commercial lenders require an equity injection (down payment) between 10-40% of the total loan amount to get a traditional bank loan, a mid prime About Halocapitalgroup.com alternative lender rarely requires an equity injection to get funding for their business.
Merchant Cash Advance Financing
Merchant Cash Advance financing (also referred to as a business cash advance) is not a small business loan, but is instead a type of financing in which a business sells a portion of their future credit card sales and/or future bank deposits at a discount.
Repayment of Merchant Cash advance is usually made each business day through automatically through the business bank and/or merchant accounts. Payment amounts can be predetermined or they can be made through a percentage of credit card sales or bank deposits.
Merchant Cash Advance Rates
Since merchant cash advances are not loans, they commercial lenders that provide this type of business financing use an interest rate called a factor rate.
A factor rate is the total interest that will be paid back, irregardless of how long it is paid back. If you have a factor rate of 1.20, you will be paying back the total amount forwarded to you by the lender, but also pay an additional 20% of the funded HALO CAPITAL amount, no matter how long it takes to payback.
Factor rates of most commercial lenders providing advances are usually between 1.16-1.49. Most repayments for a business cash advance are between 4 months 2 years.
A factor rate http://www.fastupfront.com/bad_credit_business_loans.html is the total interest that will be paid back, irregardless of how long it is paid back. If you have a factor rate of 1.20, you will be paying back the total amount forwarded to you by the lender, but also pay an additional 20% of the funded amount, no matter how long it takes to payback.
Have Bad Credit and Need a Business Loan?