Do you own a small business, but can’t find reliable payment processing or a loan due to bad credit? Don’t let bad credit stop you from pursuing your dreams. Business owners no longer have to rely on loans from banks. In fact, a new study shows that only 25 percent of new merchants turn to banks for financing. Instead they use more efficient and less restrictive lenders to get the critical funds necessary to grow their businesses.
eMerchantBroker knows that even good business owners can have bad credit. But even if your business has a choppy credit history, you still deserve dependable payment processing and access to loans. That’s why a growing number of merchants with bad credit are skipping traditional lenders, and choosing online lenders that want to work with them regardless of credit.
The Micro Lender Option
A merchant is said to have bad credit if their score is between 300 and 629. This type of credit score can be difficult to overcome, but micro lenders are usually willing to offer bad credit merchants a small-business loan. They are a recommended option for those who need a loan between $3,000 and $35,000 and specialize in lending to small businesses and startups. Plus micro lenders have far fewer restrictions than traditional lenders.
No matter where merchants go for funding, their chances to be attain a merchant account increase as their credit score increases. This process begins with a solid business plan and proof that you are working to improve your credit. If you’re behind on credit card payments, for example, present a plan that shows how you plan to pay down the credit card. Then prove that you can make the payments on time for a few months.
In the end, if your business can demonstrate a positive trajectory in cash flow it can be eligible for a small business loan from the right lender. Businesses with bad credit deserve easy, straightforward, and quick services from veteran payment processors. EMB is a leading online small business lender with a streamlined application that is user friendly. EMB applicants don’t worry about application fees or VISA and MasterCard requirements.