A Good Option for Bad Credit Small Business Loans: Cash Advances
When your business or a business owner has a credit score of below 650, it signifies that you are already in bad credit. This makes getting business funding more difficult than ever, especially with the kind of economy that we currently have. It limits our sources and that starting and expanding the business may become more difficult.
It is a good thing that finance companies and their secured business loans are not the only source for business funding available in the industry. There are other forms of bad credit small business loans at your disposal as well.
One example of this is cash advance. This service is specifically for credit card holders. It allows them to withdraw or use funds either through their ATMs or the card itself. This means, the money that they took can be used as a business funding source. In short, it could be thought of as a form of small business loans with bad credit.
If you are looking into the possibility of getting your own cash advance, the following requirements may be necessary.
You should not have any existing loans or any designations which can be considered as high risk. If you do, you might get disqualified.
They may not appreciate start-ups. In order to qualify, your business should be operating for at least two to three months.
Your business should gross at least $15,000 per month
The capital given should be used to develop, improve, or expand the business. In short, it could only be spent for business purposes.
Cash advances may be strict in some regard, and the way you can spend the money has certain limitations. However, it is already a good enough option to maintain the operations of your business. Just make sure that you use it the way it should be used.
The second disadvantage that can be turned to an advantage is the limitation in the amount that they are able to lend to someone with bad credit. Considering your bad credit score, chances are, you will be having a difficult time in paying them off. Being able to lend only a portion of the amount that you actually need increases your chances of preventing defaulting your payment terms.
In the end, disadvantages can be turned to advantages. It is just a matter of perspective.