Many people searching our FSBO business directory have a great idea for a business, but simply do not have the money to get started. In addition, if your credit is bad, so the chances of getting a traditional business loan are slim to none. It can be difficult to get a business off the ground if your lending options are limited by a bad credit score. Fortunately, there are several alternatives that can help you get the funding you need to get your project off the ground. Let's explore three options that any struggling entrepreneur can use to help get their business started.
Business Cash Advance
One of the fastest and easiest ways to get the money you need to reinvest back into your business is through a business cash advance. This unique opportunity will turn the sales from your credit card processor into the funding you need today. The company you choose to work with will work out a fixed amount depending on your average sales from credit cards. At the end of the day a certain portion of your credit card sales will be used to pay toward the balance. There are no checks to write or payments to make, as the whole process is automated. The lending company will only get paid if you get paid.
Business Credit Cards
For those who have a bad credit, one of the better options is trying to secure a credit card in the name of your company. Through this credit card, you have the ability to start building up a business credit line, which will help you in the future. One of the better aspects of a business credit card is just like many personal cards, they offer rewards and cash back. The majority of business credit cards offer businesses at least 2% cash back. Most business credit cards can be approved with a low credit score. This is an important step if you are unable to use your company name. The downside to these cards is they often charge high-interest rates if the principal is not paid off within a specific grace period. Anther option that is available for small business owners is a home equity line of credit.
Using Your Home For Business Purposes
There are many options available to secure the funds you need for a business, yet few people ever think of putting their house on the line. If you own your home, this is almost a guaranteed way of getting the money you need to invest back into your business. However, it should be warned that this is one of the riskiest options on the list. You are using your personal property as collateral in order to secure a bank loan. If you are unable to pay you do run the risk of losing your home. However, for those business owners who have no other option, it is the best opportunity to get the funds that are needed.
Bring Your Banking To A Local Level
If you have been banking with one of the major banks like Citibank or Wells Fargo, you may want to cut the strings. If you have struggled in the past to get the lending you need for your company, it is best to bring your business back to a local banking level. Seek out regional banks and credit unions in the area and open up a business bank account. Deposit a sufficient amount of starting cash and let the account mature. As you build a relationship with the bank and they are able to see your cash flow, a loan will be much easier than dealing with a faceless corporation.
These are just three options to get the funding that you need to see your business grow and succeed. Of course, none of them will work overnight. They do require some planning and work. However, they can get you the cash you need if you have the patience, which is essential when dealing with lending for your business.
Merchant Cash USA was founded in 2015 to help businesses grow by obtaining the cash flow they need. The organizationís mission is to offer small to medium size business owners cash advances without the hassle of big bank requirements. Visit MerchCash.com to find out more.