The holiday shopping season is coming and many small and medium sized businesses are feeling the pinch of the slow economy. Many of the small companies are operating without adequate employee or inventory levels to handle the additional customer spending that comes with the Christmas Season. Getting the extra funding to help meet the holiday demand seems out of reach for many business owners because the slow economic cycle has contributed to lower average credit ratings.
Most people running businesses will continue operating without sufficient working capital because the common assumption is that a bank will not provide a less than perfect credit applicant funding. The truth is that banks will not, however, there are business financing options now available. Alternative financing companies such as Shield Funding offer bad credit business loans for existing business owners that cannot meet the tough requirements for a traditional business loan.
How Bad Credit Business Loans Work
A bad credit business loan is a business loan structured in a very different way than a traditional loan. What alternative financing companies do is offer to purchase future gross sales receipts at a discount. In other words, a borrowing business owners receives a bulk payment in advance to help purchase inventory and other business requirements, and in exchange will pay back the principal amount plus broker fees and administrative costs.
Bad credit business loans can either come packaged as a business cash advance or an ACH loan. Both financial loans come as a purchase or sale of future revenues, the only difference is how the business loan is paid back. A business cash advance is paid back with a percentage of each sale as it is processed with the credit card company. For companies that do not process credit cards an ACH loan deducts daily payments from the business bank account, very similar to a company that charges a bank account automatically. Both of these business loans are for business owners who either have bad credit, or just cannot meet the strict requirements expected from banks.
Having bad credit should not stop any business from capitalizing on the holiday season. Many businesses have existing customers that will spend three or four times as much during the holiday season if a company can provide a product or service. Small business owners can use the financing to hire more employees, purchase additional products, or even advertise to capture the additional spending. It makes no sense for a business to operate without enough money to handle the holiday rush.
An Accredited Bad Credit Business Loan Company
Shield Funding is one of the leading providers of business loans for bad credit. The company believes that many small businesses are experiencing tough times because of the economy, and just a small amount of financial assistance is all that it takes to improve a company’s economic position. They have been providing this type of financing for years and continue to be the company that many local business owners rely on when they require business financing.
If you are a business owner and do not have the working capital to handle the holiday season apply for a bad credit business loan. Many alternative lenders can be found online, just be sure to use a trusted lender with an excellent credit rating like Shield Funding. The application doesn’t cost a dollar, and the whole process can be completed within a few days. Make this holiday season successful by obtaining additional working capital from an alternative financing company.