Business Loans for Bad Credit - Why Are These Better Than Bank Loans?
Bad credit histories have become a common place scenario these days. This is especially the case when you look at the economic downturn experienced in the US in the last few years. Though many companies have valid reasons for having a poor credit history, those are not still considered by the banks. For example, during recession time, especially in the year 2009-10, many small businesses failed to pay their vendors or faced problems in correcting their cash flow issues. In these scenarios, enterprises need funds to bring their processes back on track again and banks are usually not all that keen to even consider such applications that are supported by a marred credit history. Business loans for bad credit are the way in which enterprises can get the financial assistance they need.
By most accounts, bad credit business loans are considered to be much better than financial assistance taken from banks and other traditional sources. Let us look at why this might be.
In case of bank loans, you can expect to need an amazing credit score, several years of business history, personal financial statements, tax returns, monthly cash flow predictions and a real business plan. If you have been in business for a while, anticipate needing several references from other business people in the community. In most cases, any mistakes with your paperwork alone are enough to kill your chances of availing of a loan at all. Most new or recovering enterprises will not be able to achieve these levels for at least two to three years. But with bad credit business loans, the process happens to be much easier. First of all, these companies are not at all concerned with your credit history at all. In some cases, these companies do not even require the applicant to offer collateral security. Processing statements detailing credit card receipts for six months that exhibit a specific income level, typically around $5,000 per month, a decent credit report and a letter stating that you are current with your lease – this is about all that is needed for a business loan such as this one. The amount of time taken to process these loan applications is also much less than normal loans.
Business loans from banks are usually more structured and therefore, rigid in terms of the types and amount of loans they provide. Plus, banks never provide you with the entire amount that you have requested for. But in case of bad credit business loans, things get much easier for the loan applicant. Bad Credit Business Loans: Typical loans range from $5,000 to $1,000,000 per location. To qualify for a large amount of financing you will have to show an ability to pay them off based upon credit card sales, not your credit rating. If your business has a promising future ahead, you will definitely get the loan amount you seek, whether your requirement be big or small.
For more information about business loans with bad credit, visit Wallfunding.com
About The Author
Dean Adams is a financial expert who specializes in business loans for bad credit. His articles are a treasure trove of information for any entrepreneur looking for tips and advice to manage his find requirements and credit history. He recommends WallFunding.com as a trusted source for availing such loans.