As some of you already know, I am currently marketing for a
credit card factoring company. As with any of my jobs, I look at the service as if I were the one using it.
I had never heard of a Bad Credit Business Loan before I started working here. Now that I have, I think it is a great idea that can be very helpful for small businesses. That said, these so-called “poor credit unsecured loans” can cause problems if not used properly.
Here are a few scenarios where a bad credit business loan may be a bad choice for your business.
1. You really need the money, but have no way to pay it back.
2. The reason you are using to get the cash advance isn’t important enough to justify the costs.
3. You have excellent credit and you have plenty of time to go through the process of getting a bank loan.
4. You are using your merchant cash advance in a way that won’t expand your business or increase your revenue.
5. You plan on using the business cash advance like a personal loan for thing like vacations or a new car.
This is not a complete list, but is does illustrate some of the way people have misused a bad credit business loan.
I should also point out that there are plenty of legitimate reasons for getting a merchant cash advance.
Here they are;
1. Qualifying for a merchant cash advance is much easier than with other types of business loans
2. Even with poor credit, you can be approved. That why it is often called a Bad Credit Business Loan.
3. Flexible payback – repayment is based on sales volume, not a flat rate like bank loans.
4. No collateral used for repayment of the cash advance. Which is why I like to call them poor credit unsecured loans.
5. You can receive more money from a merchant cash advance that you might get from a traditional bank loan.
6. Unlike traditional bank loans, you are not told what you can use your funding for. Although it is a good idea to refer to the above list.
7. Quick and simple application and approval process.
8. You get your funds in about a week instead of the 4-8 weeks it takes the bank to get your funds.
As you can see there are pro’s and con’s to merchant cash advances. If used the way they were design to be used, they have great value and add a tremendous benefit to your business.
Chris Ronk Writes articles about business and finance for
Rapid Merchant Cash Advance
