According to the Small Business Administration many business owners are killing their business with inadequate financing.
In a recent Small Business Administration report, over 63% of business owners attempting to find funding say they are most often targeted banks. Unfortunately, the success among these respondents of actually getting a business loan was a low 27%.
Bad credit plagues a large percentage of small business owners as a result of the financial crisis several years back. The fact remains that it’s harder for smaller businesses – even with stellar credit ratings – to get traditional bank loans than it is for larger businesses.
Access to capital is the single largest roadblock most business owners face when growing their business. With a business loan, these businesses can hire new employees, purchase additional inventory, buy or upgrade equipment and increase their marketing efforts.
Is Bad Credit Stopping You from Getting a Business Loan You Need Today?
What can a business owner do if bad credit is preventing them from getting a business loan?
The good news is there are alternative funding programs and solutions providing business owners the opportunity to obtain a business loan or line of credit regardless of having bad personal credit. Instead, other factors are taken into consideration such as bank deposit history, credit card sales, credit partners and other data sources.
There are many other types of funding programs that offer small business owners the opportunity to get business loans or access to cash without having perfect credit or subjecting themselves to all the rigorous analysis, cumbersome paperwork, lengthy process and aggravating timelines that comes with a traditional business loan. Funding Programs such as:
1. Revenue Financing
2. Line of Credit Financing
3. Working Capital Loan Financing
4. Merchant Cash Advance Financing
5. Factoring & Accounts Receivable Financing
6. SBA Loan Financing
7. Equipment Financing
That is why we are providing you with a Free 18 page Special Report titled, “Are you killing your business with inadequate financing?” Discover the Lethal Borrowing Mistakes You May Be Making and Seven Loan Programs to Help You Fix Them!
It covers several factors that can get you a business loan regardless of having bad credit:
- Bank deposit financing – A business with regular bank deposits can put its cash flow to work with revenue-based loans. This program is based on the deposits going into the business bank account on a monthly basis. Typically, a business can obtain a business loan equal to 10% of its annual gross deposits regardless of having bad credit. Another benefit of this program is the time it takes to get funded, which is approximately 7 business days. Keep in mind the loan term can be as long as 18 months with this program, with rates slightly higher than a traditional bank rate. It requires no collateral, financials or tax returns. Repayments are made in small increments every day via ACH from the business bank account.
- Credit card sales financing – This type of funding program, known as a merchant cash advance, provides businesses with upfront cash in exchange for a portion of future credit card sales. For businesses that have regular monthly credit card sales but struggle with bad personal credit, a merchant cash advance may be a viable option. However, be very selective on what merchant cash advance provider you select. Some providers can cost as high as 38% while others can be as low as 12%. In addition, when it comes to repayment, the majority of merchant cash providers take a fixed percentage of your daily credit card receipt volume until the advance you took is paid back. Other business cash advance providers may offer a fixed monthly installment payment for its repayment method.
- Credit Partner Financing – Using a business partner(s) as a credit partner for obtaining lines of credit in the form of business credit cards can be a viable solution to overcome a personal credit challenge. A business partner who has strong credit scores is the best place to look. You may also want to consider someone who may be interested in participating in your business as a potential credit partner. This method does bring risk to the credit partner because they are cosigning with the business to obtain funding. However, it’s important to note the type of unsecured business credit cards I am referring to will not appear on the personal credit reports of the cosigner unless they go into default.
Here are a few more financing considerations that are valuable for any small business seeking a loan to consider:
Know that lenders want to lend to you: Lenders are in the business of lending money, and they really like to lend money to small businesses. The problem is that with traditional bank lending only 20-30% of small businesses actually ever get funding. That means over 70% of small businesses never qualify for traditional bank financing. It is your job therefore to make your business so attractive and financially sound that a lender cannot say no to you. With our business and loan mastery coaching you’ll meet this criteria. See:http://www.prosperitybreakthroughs4u.com/every-business-owner-needs-know-dealing-bank/
Do your work: Given the above, it follows that there are things you can do to ensure that you’ll get a loan: Show a consistent profit; Have a good credit history (both personally and business-wise); Have a solid business and marketing plan; Have unencumbered collateral ready if needed. With our business and loan mastery coaching you’ll meet this criteria. See:http://www.prosperitybreakthroughs4u.com/business-seen-doctor-lately/
Know your options: Today, there are a myriad of ways to get your business funded that go far beyond the traditional bank loan. It would behoove you to learn what they are and add some to your funding arsenal. That’s how you get fully funded, and that is what we aim to teach you. See: http://www.prosperitybreakthroughs4u.com/getting-ready-financing/
Attend Free PBI Loan Mastery Coaching Sessions: We are offering Free Loan Mastery Coaching Sessions for business owners in need of capital. See:http://www.prosperitybreakthroughs4u.com/free-life-mastery-coaching/
How are you doing with your working capital requirements?
Small businesses are not only achieving the American Dream, but also powering our economy. Small businesses account for the vast majority of U.S. job growth in recent years, and California’s 3.4 million small businesses employ more than half of the private-sector workforce. Join us as we celebrate small business by helping business owners get capital funding and the people who work every day to ensure your success.
We will be offering these programs to business owners in need of immediate capital, so contact us now if you are in need of immediate capital. It should certainly be worth your time because, after all, our goal is to help you fund your dream too.
In closing may I respectfully ask you…
“Is capital the one thing your business or a business owner you know needs?”
As an expert with over 20 years of business coaching experience, and teacher at three California Universities, and business owner, I can say that no matter how varied their enterprises and how different their businesses, there is one thing that is true for any business and for all businesses:
“They need capital.”
Capital funds the dream. Capital starts start-ups and generates growth. Capital is the oxygen that entrepreneurs need to breathe life into their venture so that they can create new jobs, produce products, and make that difference.
And that is why I was am happy to let small businesses of every kind know that we give every qualified entrepreneur and small business owner exactly that – access to capital from $5,000 to $50 million. Yes, capital in the amount of $5,000 to $50 million. With our mastery coaching you’ll qualify. See: http://www.prosperitybreakthroughs4u.com/every-business-owner-needs-know-dealing-bank/
We seek to give small business owners and entrepreneurs not only the know-how of how to get the money they need, but the know-who: meeting the exact people who can help them, as well as access capital. In fact we have created a program that helps to pay off the loan itself. See: http://www.prosperitybreakthroughs4u.com/loans-that-repay-themselves-program/
Please tell me how we can help you with your business funding.