Business Loans for Bad Credit – What Are the Different Sources Available
Think about it.. as a bank or financial institution, if you were approached with a loan request in which the applicant has committed defaults in previous loans or has filed for bankruptcy, will you consider lending your money to them?
This is the problem that is being faced by most business owners in recent times. The economic downturn witnessed by the US in the past few years has led many entrepreneurs to file for bankruptcies and close down shop. Of course, those who are looking for ways to get back on their feet again realise that recreating their credibility in the market will not be an easy task. To make money, you need money and money will not come by your way easily. Though many companies have valid reasons for having a poor credit history, those are not still considered by the banks. Getting banks to finance your future business endeavours will be an almost impossible task. This is why, most entrepreneurs in this scenario will look for business loans for bad credit.
There are many sources from where you can seek to apply for business loans for bad credit. Here is a list of ways in which this form of financial assistance can be availed of.
Home Equity Loans
Bad credit business houses will take a long time to rebuild their financial credibility and market viability. In the meanwhile, a small business entrepreneur can apply for a home equity loan if he or she owns a home. But while applying for such a loan, one must think about various risk factors involved in the business, as he or she is pledging the home.
Merchant Cash Advances
This is a bad credit business loan of a very short duration, usually offered against a business’ future credit card or debit card sales. The term duration of these loans is generally 24 months and payments are made in the form of small deposits made on each business day. These kinds of loans are not like regular bank loans where one needs to pay in lump sum every month and for a longer period of time. These are easy loans that are generally disbursed in as little as 48 hours of receiving an application and involve very little paperwork as well.
Family and Friends
When all else fails, there is always family to help you out. Friends and family can always be considered to avail of loans for bad credit. The people close to you will not care much about that mark on your credit history and you can always secure your loan against some collateral offered in good faith. According to statistics, about 50% of families and friends like the idea of small business and entrepreneurship, and come forward to help someone in the business.
The internet can be a great resource for gathering more information about this form of financial assistance. 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.