Do you have bad credit? Don’t let bad credit wreck your dreams of having a successful business. Companies with bad credit often get denied for loans from banks and traditional lenders. EMB is a proven online lender and payment processor that deals with high risk companies and bad credit merchants. Still there are ways for merchants with bad credit to obtain loans, other than crawling to banks. The following are a few ways that merchants can acquire funds.
Social Lending: Many merchants turn to social media for assistance in fund generation. Social sites allow entrepreneurs to go right to their target audiences for money and resources. They simply create a pitch or business plan/proposal and send it to the masses. This increases their chances of finding investors.
Micro Lending: Micro lending may be an option for some businesses. Micro lenders generally give out small to medium-sized loans from $3,000 to $35,000. The best thing about micro lenders is that they don’t have the same crippling restrictions that banks do, plus they have much faster approval times.
Use Equipment Lenders. Young businesses can raise capital through equipment lending. Equipment lenders don’t pay attention to credit scores and use office equipment as collateral.
Merchant Cash Advances
Merchant cash advances are also a good choice for merchants with bad credit. MCAs are repaid by using a determined percentage of the business’ daily credit card receipt volume. So on slow days, merchants can pay less to providers than when business is doing well.
Find a Co-signer
Another popular way to attain funding is to find a partner with better credit that is willing to co-sign a loan. But make sure your partner knows the risks associated with signing for another person. If the owner is late on payments or defaults on the loan, the co-signer’s credit will reflect these missteps.
eMerchantBroker.com specializes in working with bad credit merchant accounts. Get quick, simple, and straightforward funds and services from online payment processors. EMB is the nation’s leading online payment processor and small business lender with a user-friendly, streamlined application. Contact us today to start your bad credit merchant account today.