Obtaining Business Loans
Obtaining a business loan in today's market may be easier than you may think. If your business has a documented positive cash flow even with a low FICO score you can still obtain business loans. Below are just a few of the loans that you can apply for that may help your business grow
One loan product that may help you is a Business Cash Advance. This is a factoring loan that looks at your bank account deposit history. The lending institution will look at your account deposit history for four to six months and give you a loan based on the frequency of deposits and the dollar amount of the monthly volume. These are generally paid back with a daily withdrawal out of your business account at a set amount till the loan is paid back. They will also look at the owner of the companies personal credit score and history and make a decision based on these criteria.
Another loan type is a Merchant Cash Advance. These are very similar to Business Cash Advance but they are drawn on your credit card processing volume. These are easily obtained with a positive cash flow into your credit card volume and are generally paid back daily until the loan is paid off. You will also generally have to switch your processing to whoever is giving you the merchant cash advance. This may be a good thing as well, the cash advance company will generally offer to save you money on your processing as well.
Asset based loans are another powerful loan option if you own your building that you operate out of. You can generally get a loan at 65% - 70% LTV (Loan To Value). These loans are calculated by value of your property and not so much your monthly volume.
If you have a strong personal crdit score you can generally obtain a commercial real estate loan rather easily. If your score is weak you may pay a higher interest rate but this loan type is still a viable option if the property has value and you are able to put up collateral or have a minimum down payment to put down on the property.
For all these loans you generally need a credit score minimum of 550 but some will consider lower score with good cash flow. You will also need to be able that you own a legitimate business, checking account in business name, business license, DBA Registration or your federal tax I.D.
One loan product that may help you is a Business Cash Advance. This is a factoring loan that looks at your bank account deposit history. The lending institution will look at your account deposit history for four to six months and give you a loan based on the frequency of deposits and the dollar amount of the monthly volume. These are generally paid back with a daily withdrawal out of your business account at a set amount till the loan is paid back. They will also look at the owner of the companies personal credit score and history and make a decision based on these criteria.
Another loan type is a Merchant Cash Advance. These are very similar to Business Cash Advance but they are drawn on your credit card processing volume. These are easily obtained with a positive cash flow into your credit card volume and are generally paid back daily until the loan is paid off. You will also generally have to switch your processing to whoever is giving you the merchant cash advance. This may be a good thing as well, the cash advance company will generally offer to save you money on your processing as well.
Asset based loans are another powerful loan option if you own your building that you operate out of. You can generally get a loan at 65% - 70% LTV (Loan To Value). These loans are calculated by value of your property and not so much your monthly volume.
If you have a strong personal crdit score you can generally obtain a commercial real estate loan rather easily. If your score is weak you may pay a higher interest rate but this loan type is still a viable option if the property has value and you are able to put up collateral or have a minimum down payment to put down on the property.
For all these loans you generally need a credit score minimum of 550 but some will consider lower score with good cash flow. You will also need to be able that you own a legitimate business, checking account in business name, business license, DBA Registration or your federal tax I.D.
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