Credit scores act as a calling card for small businesses, and the wrong score can make obtaining the proper financing that much more difficult. As all too many small business owners have discovered the hard way, borrowing small business loans with bad credit can be an uphill battle.
Obstacles for Small Business Loans with Poor Credit
Banks and other traditional lenders are constantly looking to reduce risk. The last thing they want is to give money to an individual or business that may not be able to pay it back.
This is why the focus on credit scores has become an integral part of analyzing the risk associated with a borrower, especially in today’s more strict economic atmosphere. While obtaining a small business loan has always come with its own unique challenges, financial crises in recent years have put traditional lenders even more on guard.
Still, a bad credit score doesn’t stop businesses from requiring an injection of funds from time to time, creating a Catch-22 for many business owners. On the one hand, they need more funds to ensure their business is performing at its best, yet they can’t obtain them because their business is dealing with obstacles in the here and now.
Our financing options include poor credit small business loans for owners seeking working capital. Regardless of low FICO scores, National Funding’s business capital loans feature simple paperwork, fixed payments, and no collateral.
However, if a standard business loan doesn’t suit your needs, options like National Funding’s merchant cash advance may be more preferable. Instead of relying on credit scores to evaluate a business’s ability to repay a loan, this option provides much needed funds in exchange for a specific percentage of future credit card sales. This allows business owners to obtain the cash they need and repay it based on future consumer transactions rather than their credit score.
Contact National Funding today to explore your options for bad credit small business loans.
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