How many times have you seen: “Pre-Approval”? Many merchants get calls and emails ad nausea about how they’ve been “pre-approved” for this or that. What “Pre-Approved” really means is an invitation to fill out a commercial loan application. Only after that will you know if you’re actually “Approved”.
Commercial Loan Rates vary depending on the borrower’s credit profile and many other factors. Even Alternative financing options all have differences better or worse. The best cash advance apps can save merchants thousands! Cash advance apps allow business owners to shop and compare to find the best cash advance rates.
Business Funding with bad credit
Cash advance rates are fairly high because they involve unsecured, high risk obligations. Because MCA direct lenders are familiar with risk they’re more willing to finance businesses whose owners have low fico scores. Companies like JG Wentworth and 24/7 cash advance will approve borrowers that most banks decline.
Bad credit does affect cash advance rates and terms though. The better fico scores are with the owners’ personal credit, the better term they get. Because of the competitive nature of the industry there are some very aggressive lenders who will give immediate cash advances to High risk industries and business owners.
Business Funding Options
Small business loans are still the preferred method of accessing capital for most businesses. For those who can qualify for small business loans it is a competitive advantage to operate with lower capital cost. For those who because of past issues cannot access small business loans then alternative financing solutions can be critically important to the survival and we’ll being of those companies.